Nate invests 1,000 into an account with a 5.2% interest that is compounded annually. How much money will he have in this account if he keeps it for 5 years?

Solution

Nate invests 1, 000 into an account with a 5.2% interest that is compounded annually. How much money will he have in this account if he keeps it for 5 years?

Solution

Amount : 1288.48

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.052}{1})^{1 \cdot 5}

1000 (1 + \frac{0.052}{1})^{1 \cdot 5} = 1288.48301 \dots

Round to the nearest hundredth:

1288.48

Amount : 1288.48

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