# RE4 | deepseek/deepseek-v4-pro | 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 3 years is **$1,157.63**.

**Step-by-step calculation:**

The compound interest formula is:

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

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

Plug in the values:

\[
A = 1000 \times (1 + 0.05)^3 = 1000 \times (1.05)^3
\]

Calculate \((1.05)^3\):

\[
1.05 \times 1.05 = 1.1025
\]
\[
1.1025 \times 1.05 = 1.157625
\]

Multiply by the principal:

\[
A = 1000 \times 1.157625 = 1157.625
\]

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

Would you like to see how the result changes if interest compounds monthly instead of annually?
