Question

You deposit $500 in an account earning 5% interest compounded annually. How much will you have in the account in 10 years?

Answer 1

Future Value= $814.45

Step-by-step explanation:

Giving the following information:

Initial investment= $500

Interest rate= 5% interest compounded annually.

Number of years= 10

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

FV= 500*(1.05^10)

Future Value= $814.45