In order to calculate the compound amount, we can use the following formula for compound interest:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]Where A is the final amount after t years, P is the principal (initial amount), r is the rate and n is how many times the interest is compounded in a year.
So, for P = 32350, r = 0.06, t = 4 and n = 1, we have:
[tex]\begin{gathered} A=32350(1+0.06)^4 \\ A=32350(1.06)^4 \\ A=32350\cdot1.26247696 \\ A=40841.13 \end{gathered}[/tex]Therefore the amount after 4 years is $40,841.13.
