a person deposits five hundred dollars in a savings account that pays 5% annual interest that is compounded yearly. At the end of ten years, how much money will be in the savings account?
P = Po(1+r)^n.
Po = $500. = Initial investment.
r = (5%/100%) = 0.05 = APR expressed as a decimal.
N = 1Comp./yr * 10yrs = 10 Compounding periods.
Plug the above values into the given Eq and get:
P = $814.45.