Answer:
A = P (1 + i)^n where the principal P equals amount A after n periods
P = 1000 and i = .025 / yr
A1 = A (1.025) = 1025
A2 = A1 (1.025) = A (1.025)^2 etc
A5 = A (1.025)^5 = 1000 * (1.025)^5 = 1131 after 5 years
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