How much would $500 invested at 7% interest compounded annually be worth after 4 years? round your answer to the nearest cent. a. $640.00 b. $655.40 c. $535.93 d. $661.56

The answer is B.  Here's the formula: Amount = Principle(1 + rate)^time. Your variables are P= 500, r = .07, and t= 4. Set it up like this: A = 500(1+.07)^4. Add inside the parenthesis first and then raise that number to the 4th power to get 500(1.31079601). Do that multiplication to get $655.40