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?

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The interest was compounded annually.

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Answer 1 · 2018-08-06T15:36:02

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

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#