# RE4 | anthropic/claude-haiku-4.5 | run 1

## Prompt

You deposit $1,000 at 5% interest compounded annually. What is the balance after 3 years? Round to the nearest cent and show your work.

## Response

The balance after 3 years is **$1,157.63**.

## Calculation

Using the compound interest formula:

\[ A = P(1 + r)^t \]

Where:
- \( P = 1000 \) (principal)
- \( r = 0.05 \) (annual interest rate)
- \( t = 3 \) (years)

Substituting:

\[ A = 1000(1 + 0.05)^3 \]

\[ A = 1000(1.05)^3 \]

\[ A = 1000(1.157625) \]

\[ A = 1157.625 \]

Rounded to the nearest cent: **$1,157.63**

Would you like to know how to calculate the total interest earned or compare this to a different compounding frequency?
