At the beginning of year 1, Paolo invests $500 at an annual compound
1 answer:
Answer:
see below
Step-by-step explanation:
The way the problem is worded, we expect "n" to represent the year number we're at the beginning of. That is the initial balance is that when n=1, and the balance at the beginning of year 5 (after interest accrues for 4 years) is the value of obtained when n=5.
After compounding interest for 4 years, the balance will be ...
500·1.04^4 = 584.93
The matching answer choice is shown below.
You might be interested in