Investing with interest compounded annually problem. ?

Question

find the value of investing p dollars for n years with the interest rate r compounded annually.

1.

P= $500

r= 4.75%

n= 5 years

answer $630.58

2.

P=$1000

r=6.3%

n= 3 years

answer $1201.16

please explain how to get to the answer.

i really need the fomula one would use to solve this problem.

Answer 1

The forula is

A = p(1+r)^t

Answer 2

V=P*(1+r)^n where r is expressed as a decimal.

V=500*(1.0475)^5

=500*(1.26115991387685546875)

=$630.58

V=1000*(1.063)^3

=1000*1.201157047

=$1201.16

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