Question

You have $1000 in a savings account and the compound interest rate is 5% per year. After 5 years, how much money approximately do you have in the savings account if you left the money to grow?

Answer 1

The formula of compound interest is:


New Capital = Deposit x ( 1+ Interest )^(number of years


New Capitan = 1000( 1 + 0.05)^5


$1,276.28

Answer 2

Your answer is 1000( 1 + 0.05)^5

$1,276.28

Step-by-step explanation: