Final answer:
To calculate the future value of the deposit, use the formula for compound interest: Future Value = Principal x (1 + Interest Rate)^Time. Substitute the given values of Principal = $1,000, Interest Rate = 5% = 0.05, and Time = 5 years to find the future value to be $1,276.28.
Step-by-step explanation:
To calculate the future value of the deposit, we can use the formula for compound interest:
Future Value = Principal x (1 + Interest Rate)^Time
Substituting in the given values:
Principal = $1,000
Interest Rate = 5% = 5/100 = 0.05
Time = 5 years
Future Value = $1,000 x (1 + 0.05)^5
Future Value = $1,000 x 1.27628
Future Value = $1,276.28
Therefore, the future value of the $1,000 deposit after five years at 5% interest would be $1,276.28.