Question 2

You deposit $\$ 500$ in an account earning $7 \%$ interest compounded annually. How much will you have in the account in 10 years?
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Question Help:
Video 1
Video 2

Step 1 ：The problem is asking for the future value of an investment given an initial deposit, an interest rate, and a time period. The formula for future value (FV) in the case of annual compounding is: \(FV = PV * (1 + r/n)^{nt}\) where: PV is the present value or initial deposit, which is $500 in this case. r is the annual interest rate in decimal form, which is 0.07 in this case. n is the number of times interest is compounded per year, which is 1 in this case since it's compounded annually. t is the time in years, which is 10 in this case.

Step 2 ：We can plug these values into the formula and calculate the future value. PV = 500, r = 0.07, n = 1, t = 10.

Step 3 ：Calculate the future value: \(FV = 500 * (1 + 0.07/1)^{1*10} = 983.5756786447832\)

Step 4 ：Final Answer: You will have \(\boxed{983.58}\) in the account in 10 years.