Answer:
$2,323.23
Step-by-step explanation:
Lets use the compound interest formula provided to solve this:
<em>P = initial balance</em>
<em>r = interest rate (decimal)</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
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First, we will change 3% into its decimal form:
3% -> -> 0.03
Now, plug the values into the equation:
After 5 years, you will have $2,323.23