Question

how much would $500 invested at 7% interst compounded annually be worth after 4 years? round your answer to the nearst cent

Answer 1

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$500\\ r=rate\to 7\%\to (7)/(100)\dotfill &0.07\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &4 \end{cases}`

`\bf A=500\left(1+(0.07)/(1)\right)^(1\cdot 4)\implies A=500(1.07)^4\implies \stackrel{\textit{rounded up}}{A=655.40}`