Answer:
The amount in 5 years will be $1,050.75
Explanation:
Here, we want to calculate the worth of the given amount of money in the next 5 years
We use the compound interest formula here;
A = P(1 + r/n)^nt
A is the amount after the given number of years
P is the amount invested which is $1,000
r is the rate which is 0.995% which is 0.995/100 = 0.00995
n is the number of times per year interest is compounded and that is 1
t is the number of years which is 5
substituting these values, we have
A = 1000( 1 + 0.00995/1)^5
A = 1000(1.00995)^5
A = $1,050.75