Simple or Compound Interest

GRE Quant Problem Solving
1

Hi I had a small doubt
A man deposits 500$ in a bank account earning 10% interest annually. How much money does he have after 5 years?

for this example question should we compound 500$ every year or is it just a simple interest problem?

Thanks in advance !!

2

It is usually explicitly stated whether the interest is simple or compounded.

1 Like
3

Ohh ok got it thanks a lot!!