Question

a 4 000 principal earns 5% interest compounded annually after 4 years what is the balance in the account

Answer 1

The equation that you need is:
\[A=P(1+r)^{t}\]
where A is the amount after t years, r is the annual interest rate as a decimal (0.05 in this case) and P is the principal (4000 monetary units).
Plug the values into the equation and calculate the value of A.