# RE4 | moonshotai/kimi-k3 | 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**. Using the compound interest formula \( A = P(1 + r)^t \) with \( P = 1000 \), \( r = 0.05 \), and \( t = 3 \):

\[ A = 1000(1.05)^3 = 1000(1.157625) = 1157.625 \approx 1157.63 \]

**Year-by-year breakdown:**

| Year | Starting Balance | Interest (5%) | Ending Balance |
|------|-----------------|---------------|----------------|
| 1 | $1,000.00 | $50.00 | $1,050.00 |
| 2 | $1,050.00 | $52.50 | $1,102.50 |
| 3 | $1,102.50 | $55.13 | $1,157.63 |

The exact value is $1,157.625, which rounds to **$1,157.63** at the nearest cent.

Would you like to see how the balance changes with monthly or daily compounding instead?
