# RE4 | deepseek/deepseek-v4-pro | 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**.

**Work:**

Use the compound interest formula:

\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]

where:  
\( P = 1000 \) (principal)  
\( r = 0.05 \) (annual interest rate)  
\( n = 1 \) (compounding period per year)  
\( t = 3 \) (years)

Plug in the values:

\[ A = 1000 \left(1 + \frac{0.05}{1}\right)^{1 \times 3} = 1000 (1.05)^3 \]

Calculate step by step:

\[ (1.05)^2 = 1.1025 \]  
\[ 1.1025 \times 1.05 = 1.157625 \]  
\[ 1000 \times 1.157625 = 1157.625 \]

Rounded to the nearest cent:

\[ 1157.63 \]

Is there a different compounding frequency you’d like to compare, such as monthly or daily?
