Explanation:

Annual interest is 3.5% so monthly this is

3.5/12%->3.5/(12xx100)=3.5/(1200)

The time span is 4 years but the calculation cycle is monthly. Thus the time span is $4 \times 12 = 48$ months

Let the principle sum be $P$ giving:

P(1+3.5/(1200))^48=$5000 Divide both sides by ${\left(1 + \frac{3.5}{1200}\right)}^{48}$P=$4347.677015...

P~~\$4347.68 rounded to 2 decimal places