Question 628675: a person deposited $500 in a savings account that pays 5% annual interest that is compounded yearly. At the end of 10 years, how much money will be in the savings account? i have the answer, the problem is i have to show the work with the formula you know like
100+(a-1)+ 5
a2 3+40(3-1)
I have always been a poor math student, not to mention I graduated high school 18 yrs. ago and have never experienced problems like these before. It is al confusing to me, and even more confusing having to do a formula. The answer I believe is 814.45, I got this using simple math, please show me the way it is written in the formula way. Thanks juanita
Answer by John10(297)   (Show Source):
You can put this solution on YOUR website! a person deposited $500 in a savings account that pays 5% annual interest that is compounded yearly. At the end of 10 years, how much money will be in the savings account.
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Hi,
If you remember the formula:
A = P(1 + r/n)^(nt)
So we have P = $500, t = 10 years,, r = 5% or 0.05 , n = 1 (annually compound)
So we need to find A (compounded amount)
A = 500(1 + 0.05/1)^(1*10)
= 500(1.05)^10
= $814.45 which is what you found. Excellent job:)
John10
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