Answer:
A = 1000·1.04^5
Step-by-step explanation:
When 4% of the amount in the account is added to the amount in the account, the result is that amount is multiplied by 1.04:
amount + 0.04×amount = amount×(1 + .04) = 1.04×amount
The account is multiplied this way for each of 5 years. An exponent is used to signify repeated multiplication, so we can write the account balance as ...
A = ((((1000×1.04)×1.04)×1.04)×1.04)×1.04 = 1000×1.04^5
