Question

If you deposit P dollars in a savings account and earn compound interest of r% the value of your deposit after t years in the account can be found using the expression P(1+0.04)t. Find the value of $500 after 7 years in a savings account at 4% interest

Answer 1

You practically answered this one yourself by giving some of the equation we need already filled in. It would look like this: A(t)=500(1.04)^7. Start by taking 1.04 to the power of 7 to get A(t)=500(1.3159). Finish by multiplying to get
A(t)=$657.97