Question

How much would $500 invested at 7% interest compounded annually be worth after 4 years? Round your answer to the nearest cent. A.$661.56B.$655.40C.$535.93D.$640.00

Answer 1

`\begin{gathered} To\text{ answer this question we will use the formula for compound interest.} \\ A\text{ = P\lparen1+i\rparen}^n \\ A\text{ = 500\lparen1+7\%\rparen}^4 \\ \text{ =\$655.40} \end{gathered}`

Correct option B: $655.40