At the beginning of year 1, paolo invests $500

Answer:
The correct option is C.
Step-by-step explanation:
Principal Amount = $500
Rate of Interest = 4%
= 0.04
Time = 4 years
n = 1
[tex]Amount = 500\times(1+0.04)^{4}\\\\\implies Amount = 500\times 1.1699\\\\\implies Amount = \$584.93[/tex]
Hence, The explicit formula which can be used to find the amount of the money in the account :
[tex]A(n)=500\cdot (1+0.04)^{(n-1)}[/tex]
Therefore, The correct option is C.