A deposit of $500 is made in a savings account that pays 6% interest compounded annually. If no withdrawals or additional deposits are made, what will be the value of the account after 1 year? (Hint: Use I = prt.)
500(1.06)^1 Multiply the original amount by 1.06 to the power of how many years it is. You get 1.06 by adding the percentage of the interest to 1 followed by a decimal.
