Solution
For this case we can use the following formula:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where
A= future value, P= present value= 400800.00
r= 5.5%=0.055, n =1 , t= 4 years
n= represent the number of times that the interest is compounded each year =1 for this case
Replacing we got:
[tex]A=400800\cdot(1+\frac{0.055}{1})^{4\cdot1}=496520.92[/tex]then we can find the interest in the following way:
[tex]I=A-P=496520.92-400800=95720.919[/tex]