1. **Problem Statement:** Calculate the amount of $350 invested at 6% interest compounded annually after 1 year. 2. **Formula:** The compound interest formula is $$A = P \left(1 + \frac{r}{n}\right)^{nt}$$ where: - $A$ is the amount after time $t$, - $P$ is the principal (initial investment), - $r$ is the annual interest rate (decimal), - $n$ is the number of times interest is compounded per year, - $t$ is the number of years. 3. **Given:** - $P = 350$ - $r = 0.06$ - $n = 1$ (compounded annually) - $t = 1$ 4. **Calculation:** $$A = 350 \left(1 + \frac{0.06}{1}\right)^{1 \times 1} = 350 \times (1 + 0.06)^1 = 350 \times 1.06$$ 5. **Intermediate step with cancellation:** $$A = 350 \times \cancel{1.06} = 371$$ 6. **Final amount:** $$A = 371$$ So, the amount after 1 year compounded annually is **371** (rounded to the nearest cent).