# RE4 | x-ai/grok-4.3 | 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.

The compound interest formula is \( A = P(1 + r)^t \), with \( P = 1000 \), \( r = 0.05 \), and \( t = 3 \).

Calculate year by year:  
- After year 1: \( 1000 \times 1.05 = 1050 \).  
- After year 2: \( 1050 \times 1.05 = 1102.50 \).  
- After year 3: \( 1102.50 \times 1.05 = 1157.625 \), rounded to the nearest cent as 1157.63.  

Alternatively, \( 1000 \times (1.05)^3 = 1000 \times 1.157625 = 1157.63 \).

What initial deposit amount would you like to model instead?
