1. **State the problem:** A person deposits 500 each year into a bank account with an annual interest rate of 5%, making 6 deposits in total. We want to find the balance after the last deposit. 2. **Formula used:** This is a future value of an ordinary annuity problem. The formula for the future value $FV$ after $n$ deposits of amount $P$ at interest rate $r$ per period is: $$FV = P \times \frac{(1+r)^n - 1}{r}$$ 3. **Apply values:** Here, $P=500$, $r=0.05$, and $n=6$. 4. **Calculate:** $$FV = 500 \times \frac{(1+0.05)^6 - 1}{0.05}$$ $$= 500 \times \frac{1.34009564 - 1}{0.05}$$ $$= 500 \times \frac{0.34009564}{0.05}$$ 5. **Simplify fraction:** $$= 500 \times \cancel{\frac{0.34009564}{0.05}}$$ $$= 500 \times 6.8019128$$ 6. **Final balance:** $$= 3400.9564$$ So, the balance after the last deposit is approximately 3400.96. 7. **Excel formula:** Use the formula for future value of an annuity in Excel: `=FV(0.05,6,-500,0,0)` Note: The payment is negative because it is an outflow (deposit).