Question

Nate deposited $1,000 in an account earning 5% interest compounded annually. To the nearest cent, how much will he have in 4 years?

Answer 1

$1215.51

Explanation:

Nate starts with $1000

His interest is compounded, so:

1000(1.05)^x

1000(1.05)^4 = $1215.51