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) $392
B) $550
C) $625
D) $638

Question

Quizplus · Accepted Answer

We can use the formula A=P(1+r/n)^(nt) where A is the amount at the end of the time period, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per 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 answer is D.

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