# RE4 | z-ai/glm-5.2 | 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**.

This is calculated using the compound interest formula:

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

Where:

- \( A \) = final amount
- \( P \) = principal (\$1,000)
- \( r \) = annual interest rate (5% = 0.05)
- \( t \) = time in years (3)

**Calculation:**

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

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

\[
A = 1000 \times 1.157625
\]

\[
A = 1157.625
\]

Rounded to the nearest cent:

\[
A \approx \$1,157.63
\]

Each year the interest is applied to the growing balance: \$50.00 in year one, \$52.50 in year two, and \$55.125 in year three, totaling \$157.63 in interest earned.

Would you like to see how the result changes with monthly compounding instead?
