Respuesta :
Answer:
$562.43
Step-by-step explanation:
V(3) = [tex]500 ( 1 + \frac{0.04}{1} )^{3} \\500 (1.04)^{3}[/tex]
= 562.43
The interest is $562.4 compounded annually.
What is Compound interest?
Compound interest is defined as interest paid on the original principal and the interest earn on interest of principal.
P = $500
r = 4%
t = 3 years
CI = P( 1+ r/100)ⁿ
CI = 500 ( 1+ 4/100)³
CI = 500 ( 1+ 0.04)³
CI = 500 ( 1.04)³
CI = 500 ( 1.1248)
CI = 562.4
Hence, the interest is $562.4 compounded annually.
Learn more about Compound interest here:
brainly.com/question/25857212
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