Question

A savings account with $1,000 has no other

Answer 1

Answer:

A = P (1 + i)^n     where the principal P equals amount A after n periods

P = 1000     and i = .025 / yr

A1 = A (1.025) = 1025

A2 = A1 (1.025) = A (1.025)^2     etc

A5 = A (1.025)^5 = 1000 * (1.025)^5 = 1131 after 5 years