To calculate the amount in your account after 3 years with an annual interest rate of 5%, we can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A is the final amount
P is the principal amount (initial amount)
r is the annual interest rate (in decimal form)
n is the number of times the interest is compounded per year
t is the number of years
In this case, P = $15,000, r = 5% = 0.05, n = 1 (compounded annually), and t = 3.
Substituting the values into the formula, we have:
A = 15000(1 + 0.05/1)^(1*3)
A = 15000(1 + 0.05)^3
A = 15000(1.05)^3
A = 15000(1.157625)
A ≈ $17,364.38
Therefore, the amount in your account after 3 years at an annual interest rate of 5% will be approximately $17,364.38.