Compounding (1.1-2) Problem 1 If you place $100,000 into a savings account earning 5% per year, compounded annually, how much will you have after 1 year? In this case, your money would be in an account for 1 year, after which the bank would pay 5% interest. PV $ 100,000.00 1 5% FV 11 5% 17