Final answer:
Rashad would have approximately $731.14 after 10 years if he leaves $500 invested at 4.7% annual interest rate with compounding.
Step-by-step explanation:
To calculate the amount Rashad would have after 10 years with an annual interest rate of 4.7% compounded annually, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount
P is the principal amount (initial investment)
r is the annual interest rate (as a decimal)
n is the number of times that interest is compounded per year
t is the number of years
Since Rashad starts with $500, r = 4.7%, n = 1 (compounded annually), and t = 10, we can substitute these values into the formula:
A = 500(1 + 0.047/1)^(1*10)
A = 500(1 + 0.047)^10
Using a calculator, we find that A ≈ $731.14. Therefore, Rashad would have approximately $731.14 after 10 years if he leaves $500 invested at 4.7% with annual compounding.