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Answer :

deposit amount = $1000. this is the present value PV

rate of interest r= 5%

compounded monthly n= 12

time t = 5 years

The balance after 5 years is the future value FV at the end of 5 years

Formula to calculate FV = PV x (1+ r/n)^t*n

FV = 1000 x (1+ 0.05/12)^5*12

FV = $1283.358679

Therefore account balance after 5 years = $1283 (answer rounded off to nearest integer)