Suppose you have just opened a savings account with a bank and made a payment of $1000 right away (Time 0). You make another two payments: $2000 at the end of year 1 (Time 1) and $1000 at the end of year 4 (Time 4). Assuming that the bank pays 3% interest compounded annually, and that you make no withdrawal at all, calculate your account balance at the end of year 5 (Time 5).

Time Payments ($) Interest rate 0 1000 3% 1 2000 3% 4. 1000 3%