To calculate the amount expected at the end of a 4-year investment with compound interest, we can use the compound interest formula:

$A = P \left( 1 + \frac{r}{100} \right)^t$

Where:

• $A$ is the amount at the end of the investment period.
• $P$ is the principal amount (initial investment).
• $r$ is the annual interest rate.
• $t$ is the time the money is invested for, in years.

Given:

• $P = 1000$ (initial investment),
• $r = 5.4\%$,
• $t = 4$ years,

We can now substitute these values into the formula:

$A = 1000 \left( 1 + \frac{5.4}{100} \right)^4$ $A = 1000 \left( 1 + 0.054 \right)^4$ $A = 1000 (1.054)^4$

Now, let's calculate $(1.054)^4$:

$A = 1000 \times 1.2331 = 1233.10$

Thus, the amount expected to be received at the end of the 4 years is $1233.10.

Would you like more details or further explanation?

Here are 5 related questions:

1. What is the formula for compound interest with monthly compounding?
2. How would the result change if the interest was compounded quarterly?
3. Can you explain the difference between simple and compound interest?
4. What happens if the investment is for a longer period, say 10 years, at the same rate?
5. How can you calculate the interest earned separately from the total amount?

Tip: For compound interest, the longer the time period or the higher the interest rate, the more significant the growth of the investment.