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)$550

Question

Quizplus · Accepted Answer

Using 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 per year, and t is the time in years, we get A=500(1+0.05/1)^(1*5)=638. Therefore, you will have $638 in the account at the end of five years.

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