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 ?

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

To calculate the future value of the savings account after 10 years with an annual interest rate of 5% compounded yearly, we can use the compound interest formula:

Future Value = Principal * (1 + Interest Rate)^Number of Periods

In this case, the principal (initial deposit) is $500.00, the interest rate is 5% (or 0.05 as a decimal), and the number of periods is 10 years.

Let's calculate it step by step:

1. Convert the interest rate to decimal form: 5% = 0.05.

2. Plug in the values into the formula:

Future Value = $500.00 * (1 + 0.05)^10

3. Calculate the exponent first:

(1 + 0.05)^10 = 1.05^10

Using a calculator or a spreadsheet, find that 1.05^10 is approximately 1.62889.

4. Multiply the principal by the result:

Future Value = $500.00 * 1.62889

5. Calculate the final result:

Future Value ≈ $814.45

Therefore, after 10 years, the amount of money in the savings account will be around $814.45.