Algebra-1

1. Recall the compound interest formula for monthly compounding:

The formula is , where:

 is the final amount of the investment.

 is the principal amount (the initial investment). Here, .

 is the annual interest rate (in decimal form). Given  (4% annual interest rate).

 is the number of times interest is compounded per year. Since it's compounded monthly, .

 is the number of years. Here, .

2. Substitute the values into the formula:

First, calculate the value inside the parentheses:

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