posted by Mickey on .
If $1,000.00 is deposited into an account paying 3% interest compounded annually (at the end of each year), how much money is in the account after 5 years? (Round to the nearest cent.) I cannot remeber the formula for this problem can you help
Amount = principal( 1+i)^n
where i is the interest rate per period expressed as a decimal, and n is the number of interest periods
for yours i = .03
n = 5
Amount = 1000(1.03)^5
ahhh, just read your question again.
I think your are saying that $1000 is deposited EACH year for 5 years
Amount = deposit [1.03^5 - 1]/.03