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Answer:
You will have $623.3441462 in your account after 7 years
Step-by-step explanation:
The formula of the compounded interest is A = P [tex](1+\frac{r}{n})^{nt}[/tex] , where
∵ You are opening a savings account with $500
∴ P = 500
∵ The bank offers 3.2% interest, compounded yearly
∴ r = 3.2% ⇒ divide it by 100 to change it to decimal
∴ r = 3.2 ÷ 100 = 0.032
∵ The interest is compounded yearly
∴ n = 1
∵ The time is 7 years
∴ t = 7
→ Substitute these values in the rule above to find A
∵ A = 500 [tex](1+\frac{0.032}{1})^{1(7)}[/tex]
∴ A = 500 [tex](1.032)^{7}[/tex]
∴ A = 623.3441462
∴ You will have $623.3441462 in your account after 7 years