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

Assuming you have a calculator, the factor will be 1.05 times itself ten times, except that in reality, it will be rounded to the penny each year.  Apply that to the principal amount.

anonymous · Answer

actually to the power of ten, not times ten

anonymous · Answer

$$500(1.05)^{10}$$

anonymous · Answer

What exactly do you think something to the power ten means?