Final answer:
The balance after 10 years in a savings account with a $500.00 principal and 10% interest compounded annually is $1,610.51.
Step-by-step explanation:
To find the balance after 10 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount
r = the annual interest rate (as a decimal)
n = the number of times interest is compounded per year
t = the number of years
In this case, the principal (P) is $500.00, the interest rate (r) is 10% or 0.10, the number of times interest is compounded per year (n) is 1, and the number of years (t) is 10. Plugging these values into the formula, we get:
A = 500(1 + 0.10/1)^(1*10)
Simplifying, we have:
A = 500(1.10)^10 = $1,610.51
Therefore, the balance after 10 years is $1,610.51, option c.