Question

How much would $500 invested at 9% interest compounded annually be worth after 4 years? Round your answer to the nearest cent. Do not include units in your answer.

Answer 1

F=P(1+i)n where F is the Future amount P is the Present amount/Capital i is the interest rate n is the number of periods ----------------------------- In this case you have the given as follows: P = $500 i = 9% n = 4 years ----------------------------- Substituting the values to the formula you'll have: F=500(1+0.09)4 F=705.79

Answer 2

Using the formula for simple interest you'll have: F=P(1+i)n where F is the Future amount P is the Present amount/Capital i is the interest rate n is the number of periods
In this case you have the given as follows: P = $500 i = 9% n = 4 years

Substituting the values to the formula you'll have: F=500(1+0.09)4 F=705.79