$1000 at 5% compounded annually for 12 years

Question

Really need some help with my math test!!

Answer 1

For the first year, the total value would be $1000*(1.05) or $1050.

For the second year, the total value would be $1000*(1.05)*(1.05) = $1000*1.05^2 or $1102.50.

At the end of 12 years, the total value would be $1000*(1.05)^12, or $1795.86.