<PRE><B>Question 628675</B>
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</PRE>