You can put this solution on YOUR website! Use compound interest formula A = P(1+r/n)^nt
P = principal amount (the initial amount you borrow or deposit)
In this question, $500
r = annual rate of interest (as a decimal)
In this question, 3% or .03
t = number of years the amount is deposited or borrowed for.
In this question, one (1) year
A = amount of money accumulated after n years, including interest.
You are solving for A
n = number of times the interest is compounded per year
In this question, the rate compounds every six months. One year is 12 months. n=12/6=2.
P(1+r/n)^nt => 500(1+.03/2)^2+1 => 500(1+.03/2)^3 => 500(203/200)^3 =>
A = $522.84
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