Step 1
Given; Suppose that you earned a bachelor's degree and now you're teaching high school. The school district offers teachers the opportunity to take a year off to earn a master's degree. To achieve this goal, you deposit $1000 at the end of each year in an annuity that pays 5% compounded annually. How much will you have saved at the end of five years? Find the interest.
a. After 5 years, you will have approximately $
(Do not round until the final answer. Then round to the nearest dollar
as needed.)
Step 2
The formula for an annuity is;
![FV=P[((1+r)^t-1)/(r)]](https://img.qammunity.org/2023/formulas/mathematics/college/8h56e7sbu9zr5p4um005t0szgz1g0sw2p1.png)
where;

![FV=1000[((1+0.05)^5-1)/(0.05)]](https://img.qammunity.org/2023/formulas/mathematics/college/renwc3a1nw68l3gxls4tulsqr8z580hqw0.png)

Thus the answer is; After 5 years you will have approximately;

The interest will be;
