Question

I have never studied geometric trying to figure out how to solve the problem: if 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 just need to know how do I go about figuring this problem out

Answer 1

\[a=p(1+r)^t\]
p is what you start with
r is the rate in increase, but cant be %, div by 100 to change into a decimal
t is the time you keep the investment

you would use a different formual if it is compounded more than once a year.
But this will work good for this one

Answer 2

does that make sense?