n in the formula
.. y = P(1 +r/n)^(nt)
is the number of compounding periods in a year (when the interest rate r is an annual rate).
Your problem statement makes no mention of compounding. It appears as though you are to assume interest is compounded annually, meaning n=1.
.. y = 500(1 +.06)^10 ≈ 500*1.790848 ≈ 895.42
The value of the investment after 10 years is $895.42.
