If you deposit $500 in a savings account at an annual interest rate of 5%, how much will you have in the account at the end of five years?
A)$625
B)$392
C)$638
D)$12,500

Question

Quizplus · Accepted Answer

We can use the formula A = P(1 + r/n)^nt where A is the amount, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded in a year, and t is the number of years.

Plugging in the values, we get A = 500(1 + 0.05/1)^(1*5) = $638. Therefore, the best choice is C.

If You Deposit $500 in a Savings Account at an Annual