Solution:
The annual compound interest can be found using the formula
Future value = Invested amount × (1 + rate)number of years
It is given that
Future value = ?
Invested amount = $500
Number of years = 1
Rate = 6%
Substituting the values in the formula
Future value = 500 × (1 + 0.06)1
By further simplification
Future value = 530
Therefore, the future value is $530.
Summary:
The future value of $500 one year from today if the interest rate is 6 percent is $530.
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Compound Interest Formula: The article discusses the calculation of annual compound interest using the formula: [ \text{Future Value} = \text{Invested amount} \times (1 + \text{rate})^{\text{number of years}} ]
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Given Values: The specific values provided in the problem are:
- Invested amount (( \text{Invested amount} )) = $500
- Number of years (( \text{number of years} )) = 1
- Rate (( \text{rate} )) = 6%
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Substitution and Calculation: The article demonstrates the substitution of the given values into the compound interest formula. The calculation process is outlined as follows: [ \text{Future Value} = 500 \times (1 + 0.06)^1 ]
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Simplification: The expression is further simplified to obtain the final result: [ \text{Future Value} = 530 ]
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Conclusion: The article concludes that the future value of $500 one year from today, considering an interest rate of 6 percent, is $530.
In summary, the article focuses on applying the compound interest formula to find the future value of an investment. It illustrates the step-by-step process of substituting given values into the formula and simplifying the expression to obtain the final result. This is a fundamental concept in finance and mathematics, and the provided information serves as a concise guide to understanding and solving such problems. Additionally, the mention of math worksheets and visual curriculum suggests an educational context, emphasizing a comprehensive approach to learning mathematical concepts.
