Answer:
[tex]$5,142.86[/tex]
Step-by-step explanation:
Formula for accrued amount A(Principal + Interest) when compounded annually:
[tex]A = P(1 + r)^{nt}[/tex]
where
P = principal (amount deposited)
r = Interest rate as a decimal
t = number of years
Plugging in
P = 500
r = 6/100 = 0.06
t = 40 gives
[tex]A = 500(1 + 0.06)^{40}\\\\A = \$5,142.86[/tex]
