Each year your money is multiplied by 1.05
At the end of year n, you have got
I tried this but it doesn't work, because after each year the 5% of interest has been added to the account plus the deposited $1000, and another 5% on interest is added t o this value. For example, after year 1 there is $1050 in the account to which another additional $1000 is added to make $2050, and the interest is added to get $2152.50.
I assume you mean the balance at the end of years.If you deposit $1000 in your bank account yearly, and earn 5% interest per year,
what is the formula for the term of this series?
Annuity Formula: .
. . where: .
We have: . , and periods.