This question is asking you to calculate the future value of an investment account after 3 years, given that the account earns 4% interest compounded annually.
To calculate the future value, you can use the formula for compound interest:
Future Value = Initial Investment * (1 + (Interest Rate/100))^Number of Years
Plugging in the values given in the question:
Future Value = $4,000.00 * (1 + (4/100))^3
Future Value = $4,000.00 * (1 + 0.04)^3
Future Value = $4,000.00 * (1.04)^3
Future Value = $4,000.00 * 1.124864
Future Value ≈ $4,499.46
So, after 3 years, there would be approximately $4,499.46 in the account. Rounded to the nearest dollar, this would be $4,499.