Question

When interest is compounded once a year, the formula for compound interest is A=P(1+r)t in the formula, A represents the amount of money after t years, p represents the principal, and interest rate written as a decimal. If p=$500 r=3% and t=2
What is the amount of compound interest?

Answer 1

The interest part would be

P(1+r)^t - P

Answer 2

I don't understand

Answer 3

Is that the answer