1. **State the problem:** Calculate the future value of annual deposits of $400 made for 5 years with an annual interest rate of 10%. 2. **Formula used:** The future value of an annuity formula is $$FV = P \times \frac{(1 + r)^n - 1}{r}$$ where $P$ is the annual deposit, $r$ is the annual interest rate, and $n$ is the number of years. 3. **Substitute values:** $$FV = 400 \times \frac{(1 + 0.10)^5 - 1}{0.10}$$ 4. **Calculate powers:** $$FV = 400 \times \frac{(1.10)^5 - 1}{0.10}$$ $$= 400 \times \frac{1.61051 - 1}{0.10}$$ 5. **Simplify numerator:** $$= 400 \times \frac{0.61051}{0.10}$$ 6. **Simplify fraction:** $$= 400 \times \cancel{\frac{0.61051}{\cancel{0.10}}}$$ $$= 400 \times 6.1051$$ 7. **Multiply:** $$FV = 2442.04$$ **Final answer:** The balance after 5 years will be $2442.04. This corresponds to the option $2,442.04.