Answer : The amount after 1 year will be, $1050
Explanation : Given,
Principle = $1000
Time = 1 year
Rate = 5.0 %
Formula used :
[tex]A=P(1+\frac{R}{100})^t[/tex]
where,
A = amount
P = principle
R = interest rate
T = time
Now put all the given values in the above formula, we get:
[tex]A=P(1+\frac{R}{100})^t[/tex]
[tex]A=\$ 1000(1+\frac{5.0}{100})^{1}[/tex]
[tex]A=\$ 1050[/tex]
Therefore, the amount after 1 year will be, $1050
