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

Answer: $655.40Step-by-step explanation:Given : Principal amount = $500The rate of interest  compounded annually  =7%=0.07Time = 4 yearsWe know that compound amount after n years is given by :[tex]A=P(1+r)^n[/tex]Thus for the given situation , the compounded  amount after 4 years will be :-[tex]\\\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.}[/tex]

If 7% interest is compounded annually, then the value of the $500after 'Y' years in the future is                                                         $500 (1.07)^to the 'y' power .For this exercise, it's    $500 (1.07)⁴ =  $ 655.40 .