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?

And can you believe I have to do an essay about this stuff after I figure it out????

Question

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?

And can you believe I have to do an essay about this stuff after I figure it out????

anonymous · Answer

500.00 x .05 = ?   ? x 365 = ??  ?? x 10 = answer   is this the right way to figure it. I remember doing interest all the time in the bank, been to long to remember the way!!!

amistre64 · Answer

$$A=P(1+\%/n)^{nt}$$

amistre64 · Answer

each year the interest is added into the balance; so at the end of the next year you have to calculate interest on the interst as well

anonymous · Answer

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