Posted by **Mickey** on Friday, March 12, 2010 at 8:58pm.

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

- mat 115 -
**Reiny**, Friday, March 12, 2010 at 9:04pm
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

= ....

- mat 115 -
**Reiny**, Friday, March 12, 2010 at 9:06pm
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

= 5309.14

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