A person deposits $500.00 into a savings account and pays 5% annual interest that is compounded yearly. At the end of the 10 years how much money will be in the savings account ?

1 answer

Why would he pay interest on money that is in his own savings account?
Did you mean he "earns" interest ?

I will assume that is what you meant.

Amount = 500(1.05)^10 = 814.45