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Sagot :
[tex]~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$500\\ r=rate\to 5\%\to \frac{5}{100}\dotfill &0.05\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{yearly, thus once} \end{array}\dotfill &1\\ t=years\dotfill &4 \end{cases} \\\\\\ A=500\left(1+\frac{0.05}{1}\right)^{1\cdot 4}\implies A=500(1.05)^4\implies A\approx 607.75[/tex]
The final amount will be $607.75 after 4 years if the principal amount is $500 and it compounded annually with interest rate of 5%
What is compound interest?
It is defined as the interest on the principal value or deposit and the interest which is gained on the principal value in the previous year.
We can calculate the compound interest using the below formula:
[tex]\rm A = P(1+r)^t[/tex]
Where A = Final amount
P = Principal amount
r = annual rate of interest
n = how many times interest is compounded per year
t = How long the money is deposited or borrowed (in years)
We have in the problem:
P = $500, r = 5% = 0.05, and n = 4 years
[tex]\rm A = 500(1+0.05)^4[/tex]
A = $607.75
Thus, the final amount will be $607.75 after 4 years if the principal amount is $500 and it compounded annually with interest rate of 5%
Learn more about the compound interesthere here:
brainly.com/question/26457073
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