Question

How much compound interest will an account of $10,000 bear after 5 years at 3% APR, compounded annually? (Hint: Use the formula for annual compound interest.)

Answer 1

You would first put it into the compounded formula. So it would be 10,000(1+.03/1)^1×5=$11,592.74

Answer 2

$1,592.74 is the answer.

I honestly don't know how the compound interest formula works or how to compute it, just trying to help out after some trial and error from myself.