1. **State the problem:** Calculate the total amount in a savings account after one year with an initial amount of 500 and an annual interest rate of 5%. 2. **Formula used:** The total amount after one year with simple interest is given by: $$A = P \times (1 + r)$$ where $P$ is the principal amount, and $r$ is the interest rate as a decimal. 3. **Apply the values:** $$A = 500 \times (1 + 0.05)$$ 4. **Calculate inside the parentheses:** $$1 + 0.05 = 1.05$$ 5. **Multiply:** $$A = 500 \times 1.05 = 525$$ 6. **Interpretation:** The total amount after one year is 525, not 525%. The original answer mistakenly wrote 525% which is incorrect because the amount is in dollars, not a percentage. **Final answer:** $$\boxed{525}$$