You invest an initial $500 in an account that has an annual interest rate of 2%, compounded quarterly. How much money will you have in the account after 6 years? Round your answer to the nearest whole number.

$564

Step-by-step explanation:

You invested $500.

The annual rate is 2% and it is compounded quarterly.

You need the account balance after 6 years.

Convert the terms to their correct periodic figures.

Interest = 2%/4 = 0.5% per quarter

Period = 6 * 4 = 24 quarters

Formula for compound interest:

= Investment * ( 1 + rate) ^ time

= 500 * ( 1 + 0.5%)²⁴

= 563.579

= $564