Answer: $562.75
Step-by-step explanation:
Given : Principal amount ( Initial amount) P=$500
Time period x= 4 years
Rate of interest r= 3%=0.03
We know that the compound amount after x years will be given by :-
[tex]A=P(1+r)^x[/tex]
According to the given question, we have
[tex]A=500(1+0.03)^4\\\Rightarrow\ A=500(1.03)^4\\\Rightarrow\ A=562.7544\approx562.75[/tex]
Hence, the total amount Sara will have paid back = $562.75
