The answer is B. Here's the formula: Amount = Principle(1 + rate)^time. Your variables are P= 500, r = .07, and t= 4. Set it up like this: A = 500(1+.07)^4. Add inside the parenthesis first and then raise that number to the 4th power to get 500(1.31079601). Do that multiplication to get $655.40
