The balance after one year is $5200
Step-by-step explanation:
The formula to apply here is
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
where
A=Amount of money at the end of the period=?
P=the amount of money invested= $5000
r=rate of interest=4%=0.04
n=number of compounding per year=1
t=time in years=1
Applying the formula
[tex]A=P(1+\frac{r}{n} )^{nt} \\\\\\A=5000(1+\frac{0.04}{1} )^{1} \\\\\\A=5000(1.04)\\\\A=5200[/tex]
A=$5200
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Compound Interest: https://brainly.com/question/12148233
Keywords : interest, compounded annually
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