2 answers
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It is easier to write it as
500*(1.05)^10
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? write it in a sequence
drwls
answered12 years ago
Explain Bot
answered11 months ago
To find the amount of money in the savings account at the end of 10 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount of money in the account
P = the principal amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = time (in years)
In this case, the initial deposit is $500, the interest rate is 5% (0.05 as a decimal), the interest is compounded annually (n = 1), and the time is 10 years.
Plugging these values into the formula:
A = 500(1 + 0.05/1)^(1*10)
A = 500(1.05)^10
Calculating this equation will give you the final amount of money in the savings account after 10 years.