Kirsten invested $1000 in an account at an annual interest rate of 3%. She made no deposits or withdrawals on the account for 5 years. How do you find the balance in the account, to the nearest cent, at the end of 5 years?

The interest was compounded annually.

1 Answer
Aug 6, 2018

Amount Kirsten had after five years color(violet)(A = $1159.27

Explanation:

It’s Compound Interest.

P = $1000, R=3%, N = 5 years, A = ?

Amount A = P (1 + R/100)^

A = 1000* (1+ 3/100)^5

A = 1000 * 1.03^5

Amount Kirsten had after five years color(violet)(A = $1159.27