The formula to find the final amount A, compounded yearly for x year at r% when p is the initial amount :
[tex] A=p(1+r)^x [/tex]
Given that, $1000 is deposited into an account that earns 5% interest.
So, p = 1000 and r =5% = 5/100= 0.05.
Next step is to plug in these values in the above equation to get the equation.
Hence,
[tex] A = 1000(1+0.05)^x [/tex]
=[tex] 1000(1.05)^x [/tex]
So, the correct choice is C) y=1000(1.05)^x.
Hope this helps you!
