How much would $500 invested at 9% interest compounded annually be worth after 4 years? Round your answer to the nearest cent. Do not include units in your answer.

Question

anonymous · Answer

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shinalcantara · Answer

Using the formula for simple interest you'll have:
$$F = P(1+i)^n$$
where F is the Future amount
          P is the Present amount/Capital
          i is the interest rate
         n is the number of periods
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In this case you have the given as follows:
   P = $500
   i = 9%
   n = 4 years
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Substituting the values to the formula you'll have:
$$F = 500(1+0.09)^4$$
$$F = 705.79$$

anonymous · Answer

that explains it. i have a bunch of questions like this on apex for the unit and i dont really get it. because it has percentages and that just trows me off.