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

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Mathematics

25 January, 19:52

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

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Marshall Woodard · Answer 1

The answer is B. Here's the formula: Amount = Principle (1 + rate) ^time. Your variables are P = 500, r =.07, and t = 4. Set it up like this: A = 500 (1+.07) ^4. Add inside the parenthesis first and then raise that number to the 4th power to get 500 (1.31079601). Do that multiplication to get $655.40