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USPshnik [31]
4 years ago
12

How much would $500 invested at 7% interest compounded annually be worth after 4 years? Round your answer to the nearest cent

Mathematics
2 answers:
FrozenT [24]4 years ago
8 0

Answer: $655.40

Step-by-step explanation:

Given : Principal amount = $500

The rate of interest  compounded annually  =7%=0.07

Time = 4 years

We know that compound amount after n years is given by :

A=P(1+r)^n

Thus for the given situation , the compounded  amount after 4 years will be :-

\\\Rightarrow\ A=500(1+0.07)^4\\\Rightarrow\ A=500(1.07)^4\\\Rightarrow\ A=\$655.398005\approx\$655.40........\text{to the nearest cent.}

Arisa [49]4 years ago
6 0
If 7% interest is compounded annually, then the value of the $500
after 'Y' years in the future is
                                                         $500 (1.07)^to the 'y' power .

For this exercise, it's    $500 (1.07)⁴ =  $ <u>655.40</u> .     
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3 years ago
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3 years ago
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3 0
3 years ago
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RUDIKE [14]

Answer:

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