1. If you invest $500 in something that earns 6% interest annually, how much will you have after 4 years if you make no withdrawals so interest earned previously continues to earn interest? (Hint: This is an example of the future value of a lump sum and in general, FV = PV x (1+r)^t, where PV is the amount of money at present, r is the annual return or interest rate and t is the number of years in the future.)

A. $620

B. $627

C. $631

D. $642