Question 1021501
After 1st year:
{{{ 500 + .04*500 = 500*( 1 + .04 ) }}}
After 2nd year:
{{{ 500*( 1 + .04 ) + .04*( 500*( 1 + .04 ) ) }}}
This is a little tricky: factor out {{{  500*( 1 + .04 ) }}}
{{{ 500*( 1 + .04 )*( 1 + .04 ) }}} ( hope you can see it )
This is:
{{{ 500*( 1 + .04 )^2 }}}
--------------------
So, the rule is:
{{{ 500*( 1 + .04 )*n }}} is the amount saved after {{{ n }}} yrs
------------------
{{{ n = 3 }}}
{{{ 500*( 1 + .04 )*3 = 500*1.04^3 }}}
Use calculator
{{{ 500*1.125 = 562.43 }}}
$562.43 after 3 yrs