To find the total amount in the account after 5 years, we can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
where:
A is the total amount after t years
P is the principal amount (initial deposit)
r is the annual interest rate (as a decimal)
n is the number of times the interest is compounded per year
t is the number of years
In this case, we have:
P = 1,250
r = 0.035 (3.5% as a decimal)
n = 1 (compounded annually)
t = 5
So, substituting these values into the formula, we get:
A = 1,250(1 + 0.035/1)^(1*5)
A = 1,250(1.035)^5
A = 1,250(1.1942)
A = 1,492.75
Therefore, the total amount in the account after 5 years is $1,492.75.