A customer deposits $500 in an account that pays 4% annual interest. What is the balance after 3 years if the interest is compounded annually? Compound interest formula: V (t) = P (1 StartFraction r Over n EndFraction) Superscript n t t = years since initial deposit n = number of times compounded per year r = annual interest rate (as a decimal) P = initial (principal) investment V(t) = value of investment after t years $500. 12 $512. 00 $560. 00 $562. 43.
