Leo opened a savings account and deposited $1,000.00 as principal. The account earns 4% interest, compounded annually. What is the balance after 5 years?
Use the formula A = 1 + where A is the balance (final amount), P is the principal
(starting amount), r is the interest rate expressed as a decimal, n is the number of times per
year that the interest is compounded, and t is the time in years.
Round your answer to the nearest cent.
$
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