A customer deposits 500 dollars in an account that pays 4 percent annual interest. What is the balance after 3 years if the interest is compounded annually? Compound interest formula: cap v times t is equal to cap p times open paren 1 plus r over n close paren raised to the n t power t = years since initial deposit n = number of times compounded per year r = annual interest rate (as a decimal) cap p = initial (principal) investment cap v times t = value of investment after t years