Math  /  Algebra

QuestionIf you deposit \$1000 into a bank account that compounds annually at a 5\% interest rate, how much money will you have in the account after 3 years? \$1157.63 \$1500.00 \$1100.00 \$1150.00 Show Your Work

Studdy Solution
Calculate the final amount:
First, simplify inside the parentheses:
A=1000(1+0.05)3 A = 1000 \left(1 + 0.05\right)^{3} A=1000(1.05)3 A = 1000 \left(1.05\right)^{3}
Now calculate (1.05)3 (1.05)^3 :
(1.05)3=1.05×1.05×1.05=1.157625 (1.05)^3 = 1.05 \times 1.05 \times 1.05 = 1.157625
Now multiply by the principal:
A=1000×1.157625=1157.625 A = 1000 \times 1.157625 = 1157.625
Round to the nearest cent:
A1157.63 A \approx 1157.63
The amount of money in the account after 3 years is:
1157.63 \boxed{1157.63}

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