∵ The formula of the compound interest is
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]→ A is the new amount
→ P in the initial amount
→ r is the interest rate in decimal
→ n is the number of periods
→ t is the time
∵ The initial amount is 800 dollars
∵ The annual rate is 3% = 3/100 = 0.03
∵ It is a compounded annually
∴ n = 1
∵ t = 5 years
→ Substitute all of these values in the formula above
[tex]\begin{gathered} A=800(1+\frac{0.03}{1})^{1(5)} \\ A=800(1+0.03)^5 \end{gathered}[/tex]→ Use the calculator to find the answer
∴ A = 927.4192594 dollars
