Final answer:
To calculate the amount of money in the account after 10 years, you can use the formula for compound interest. Plugging in the given values, the approximate answer is $2,593.70.
Step-by-step explanation:
To determine how much money will be in your account after 10 years, you can use the formula for compound interest. The formula is: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial deposit), r is the annual interest rate (expressed as a decimal), n is the number of times interest is compounded per year, and t is the number of years. In this case, P = $1,000, r = 10% (0.10 as a decimal), n = 1 (compounded annually), and t = 10 years.
Plugging in these values into the formula, we get:
A = $1,000(1 + 0.10/1)^(1*10)
Simplifying the equation, we get:
A = $1,000(1 + 0.10)^10
A = $1,000(1.10)^10
A = $1,000(2.5937)
A ≈ $2,593.70
Therefore, the answer is approximately $2,593.70.