Answer:
The balance after 3 years if the interest is compounded annually is $562.432.
Explanation:
Given : A customer deposits $500 in an account that pays 4% annual interest.
To find : What is the balance after 3 years if the interest is compounded annually?
Solution :
The compound interest formula,

Where, A is the amount
P is the principal P=$500
r is the interest rate r=4%=0.04
t is the time t=3 years
n is number of times compounded per year n=1
Substitute the value in the formula,
Therefore, the balance after 3 years if the interest is compounded annually is $562.432.