# RE4 | x-ai/grok-4.3 | run 2

## 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 three years is $1,157.63.  

The standard compound interest formula applies directly here.  

## Formula
The future value \( A \) is given by  
\[ A = P(1 + r)^t \]  
where \( P = 1000 \), \( r = 0.05 \), and \( t = 3 \).

## Step-by-Step Calculation
- Year 1: \( 1000 \times 1.05 = 1050 \)
- Year 2: \( 1050 \times 1.05 = 1102.5 \)
- Year 3: \( 1102.5 \times 1.05 = 1157.625 \)

Round 1157.625 to the nearest cent to obtain 1157.63.  

Alternatively, compute directly as \( 1000 \times (1.05)^3 = 1157.625 \), which rounds identically.  

What initial amount would you like to test with a different interest rate or compounding frequency?
