Problema Solution
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?
Answer provided by our tutors
Principal = $500
Rate of Interest = 5% per annum
Time = 10 years
We Know,
Amount = Principal (1+r/100)^t
= 500 (1+.05)^10
= 500 (1.05)^10
= 500 (1.62889)
= 814.45
Therefore,
Amount in his savings account after 10 years will be $814.45