Assuming you invest $1000 at an annual interest rate of 5%, compounded annually, how much will your investment have grown after 5 years?

To calculate the future value of an investment with annual compounding interest, you can use the formula:

FV = P * (1 + r/n)^(nt)

where:

• FV is the future value of the investment
• P is the principal amount (the initial amount of money)
• r is the annual interest rate (in decimal form, so 5% would be 0.05)
• n is the number of times that interest is compounded per year
• t is the time the money is invested for in years

In this case, you're investing $1000 (P) at an annual interest rate of 5% (r = 0.05), compounded annually (n = 1), for 5 years (t = 5).

So, the calculation would be:

FV = 1000 * (1 + 0.05/1)^(1*5) FV = 1000 * (1.05)^5 FV = 1000 * 1.2762815625 FV = $1276.28

So, after 5 years, your investment will have grown to $1276.28.