A bank account earns $$ 3 \% $$ interest per year. If you deposit $$ \$ 1,000 $$ into the account, what equation would you use to determine how much will be in the account after 5 years? (1 point) $$ y=5(0.03)^{1,000} $$ $$ y=5(1.03)^{1,000} $$ $$ y=1,000(1.03)^{5} $$ $$ y=1,000(0.03)^{5} $$

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UpStudy AI · Accepted Answer

The compound interest formula is given by:

$$
A = P(1 + r)^t
$$

Where:
- $$ P $$ is the principal amount,
- $$ r $$ is the annual interest rate (in decimal form),
- $$ t $$ is the time in years.

Here, $$ P = 1000 $$, $$ r = 0.03 $$, and $$ t = 5 $$. Plugging in, we get:

$$
A = 1000(1 + 0.03)^5 = 1000(1.03)^5
$$

Thus, the correct equation is:

$$
y = 1000(1.03)^5
$$
The correct equation is $$ y = 1,000(1.03)^5 $$.

A bank account earns \( 3 \% \) interest per year. If you deposit \( \$ 1,000 \) into the account, what equation would you use to determine how much will be in the account after 5 years? (1 point) \( y=5(0.03)^{1,000} \) \( y=5(1.03)^{1,000} \) \( y=1,000(1.03)^{5} \) \( y=1,000(0.03)^{5} \)

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