ULLIVLY/1/2/3/assessment
L
1.2.3 Quiz: Exponential Functions
Question 2 of 10
2 Points
How much would $500 invested at 8% interest compounded annually be
worth after 4 years? Round your answer to the nearest cent.
A(1) = P(1 +5)*

Solution:

The formula for compound interest, including principal sum, is:

Where,

A = the future value of the investment

P = the principal investment amount

r = the annual interest rate (decimal)

n = the number of times that interest is compounded per unit t

t = the time the money is invested

From given,

n = 1 ( since interest is compounded annually)

p = 500

t = 4

Substituting the values we get,

Thus the worth after 4 years is $ 680.24

.25

step-by-step explanation: