suppose that $1000 is deposited into an account that yields 5% interest, compounded annually.How much money will be in the account at the end of 4 years

Question

I am not sure how to figure this out D;

Answer 1

We use the formula

 

A = P(1+(r/n))^nt     where,

 

A = amount accumulated

P = deposit

r = interest rate

t = time

n = number of times compounded per year

 

A = 1000(1+0.05)⁴

A = 1215.51