Answer:
one year, you will have $520 in the bank, after two years you will have $540.80, and after three years you will have $561.63.
Explanation:
AI-generated answer
To calculate the amount of money you will have in the bank after one year, two years, and three years with a $500 deposit and 4% interest compounded annually, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount of money in the bank
P is the initial deposit ($500)
r is the interest rate (4% or 0.04)
n is the number of times interest is compounded per year (1, since it is compounded annually)
t is the number of years
Let's calculate the amounts for each year:
After one year:
A = 500(1 + 0.04/1)^(1*1)
A = 500(1.04)
A = $520
After two years:
A = 500(1 + 0.04/1)^(1*2)
A = 500(1.04)^2
A = $540.80
After three years:
A = 500(1 + 0.04/1)^(1*3)
A = 500(1.04)^3
A = $561.63
Therefore, after one year, you will have $520 in the bank, after two years you will have $540.80, and after three years you will have $561.63. This is assuming you do not deposit or withdraw any additional money during this time.