select the correct answer. total amount = p (1 + i)^t sara borrowed $500 for four years at 3 percent…

select the correct answer. total amount = p (1 + i)^t sara borrowed $500 for four years at 3 percent interest, compounded annually. use the formula to calculate the total amount she will have paid back. a. $515.03 b. $562.75 c. $2060

select the correct answer. total amount = p (1 + i)^t sara borrowed $500 for four years at 3 percent interest, compounded annually. use the formula to calculate the total amount she will have paid back. a. $515.03 b. $562.75 c. $2060

Answer

Explanation:

Step1: Identify values

$P = 500$, $i=0.03$, $t = 4$

Step2: Substitute values into formula

$total\ amount=500\times(1 + 0.03)^4$

Step3: Calculate $(1 + 0.03)^4$

$(1 + 0.03)^4=1.03^4=1.03\times1.03\times1.03\times1.03 = 1.12550881$

Step4: Calculate total amount

$total\ amount=500\times1.12550881 = 562.754405\approx562.75$

Answer:

B. $562.75$