1. **State the problem:** Calculate the amount of money after 3 years if 10,000 pesos are invested at an annual compound interest rate of 5%. 2. **Formula used:** The compound interest formula is $$A = P \left(1 + \frac{r}{n}\right)^{nt}$$ where: - $A$ is the amount of money accumulated after $t$ years, including interest. - $P$ is the principal amount (initial investment). - $r$ is the annual interest rate (decimal). - $n$ is the number of times interest is compounded per year. - $t$ is the number of years. 3. **Given values:** - $P = 10000$ - $r = 0.05$ - $n = 1$ (compounded annually) - $t = 3$ 4. **Substitute values into the formula:** $$A = 10000 \left(1 + \frac{0.05}{1}\right)^{1 \times 3} = 10000 \left(1 + 0.05\right)^3 = 10000 \times 1.05^3$$ 5. **Calculate the power:** $$1.05^3 = 1.05 \times 1.05 \times 1.05 = 1.157625$$ 6. **Calculate the final amount:** $$A = 10000 \times 1.157625 = 11576.25$$ 7. **Answer:** After 3 years, the investment will grow to **11576.25 pesos**.