If a bank account earns 5% annual interest compounded annually, how much will $1,000 grow to in 3 years?

["Title: How $1,000 Grows to Over $1,157 After 3 Years with 5% Annual Compound Interest", "When it comes to growing your savings, understanding how interest compounds is key. If you deposit $1,000 into a bank account earning 5% annual interest compounded yearly, the power of compound interest transforms your money significantly over time. But just how much will your investment grow after 3 years?", "### What Is Compound Interest and Why It Matters", "Compound interest means that not only does your initial deposit earn interest, but also the interest it accumulates. Annually compounding means interest is added once each year and begins earning its own interest from the following year onward. This simple yet powerful concept turns modest savings into substantial gains over time.", "### The Math Behind the Growth", "Let’s break down how $1,000 grows with a 5% annual compound interest rate over 3 years:", "- Principal (P): $1,000\n- Annual interest rate (r): 5% or 0.05\n- Number of years (t): 3", "The formula for compound interest is:", "[\nA = P \ imes (1 + r)^t\n]", "Where:\n- ( A ) = final amount\n- ( P \ imes (1 + r)^t )", "Plugging in the numbers:", "[\nA = 1000 \ imes (1 + 0.05)^3 = 1000 \ imes (1.05)^3\n]", "Calculating:", "[\n1.05^3 = 1.157625\n]", "[\nA = 1000 \ imes 1.157625 = 1,157.63\n]", "### So, After 3 Years…", "Your initial $1,000 will grow to $1,157.63 with 5% annual compound interest. That’s an increase of $157.63—a more than 15% gain over three years, thanks to the compounding effect.", "### Final Thoughts", "If you’re saving money and want your earnings to grow efficiently, choosing an account with annual compounding makes a noticeable difference. Starting with just $1,000 at 5% annual interest compounds into over $1,157 in just three years—proof that time and compound interest work hand in hand to build wealth.", "---", "Key Takeaways:\n- $1,000 at 5% yearly compound interest grows to $1,157.63 in 3 years.\n- Compound interest offers powerful long-term growth on savings.\n- Starting early and allowing interest to compound amplifies returns significantly.", "Start growing smarter today—your future self will thank you!"]