How to find out?

Question

We calculate the money after n years by using this formula:
1000 plus 5% of 1000 = 1000 plus 5/100 x 1000 = 1000(1 plus 5/1000)

How do we find the formula for the amount of money after n years

Answer 1

Money after 1 year:
1000*1.005
Money after 2 years
1000*1.005*1.005=
1000*1.005^2
Money after 3 years
1000*1.005^3
.................................
Money after n years
1000*1.005^n

Answer 2

If the interest is added to your money at the rate of 5%yearly
Money (after n years)= Initial money(1.05)^n
So if your initial deposit is $5,000 after 7 years you have
5,000(1.05)^7=$7035.50