How much would $500 invested at 7% compoundedannually be worth after 4 years? Round your answer to the nearest cent. Do not include units in your answer

Question

Mathematics

Cunningham

2 July, 04:52

How much would $500 invested at 7% compoundedannually be worth after 4 years? Round your answer to the nearest cent. Do not include units in your answer

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Answers (1)

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Margaret Downs · Answer 1

Your answer would be $655.40

500 + (500*.07) = 535 (first year)

535 + (535 *.07) = 572.45 (second year)

572 + (572 *.07) = 612.52 (third year)

612.52 + (615.52 *.07) = 655.40 (fourth year)