Question

If $1,000 is invested in an account that pays 5% interest compounded annually an expression that represents the amount in the account at the end of five year

Answer 1

To find the amount in the account at the end of five years, we can use the formula for compound interest.

Step-by-step explanation:

To find the amount in the account at the end of five years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial amount), r is the annual interest rate (as a decimal), n is the number of times the interest is compounded per year, and t is the number of years. In this case, the principal is $1,000, the annual interest rate is 5%, and the interest is compounded annually. So we have:

A = 1000(1 + 0.05/1)^(1*5)

= 1000(1.05)^5

= 1000(1.27628)

= $1,276.28

Therefore, the amount in the account at the end of five years will be $1,276.28.

Answer 2

The formula for this is: A=P(1+r/n)^(nt)
A = amount in the account
P = amount you start with
r = rate it is compounded
t = time (in years)
n = number of times per year

Since you are looking for A, you can solve right away.
A = $1,000(1+0.05)^(5)
A = $1276.28