The rule of the compound interest is
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]A is the new amount
P is the initial amount
r is the rate in decimal
n is the period
t is the time
From the given information
P = 100
r = 12% = 12/100 = 0.12
n = 1 ======= compounded annually
t = 5
Substitute these values in the rule above
[tex]A=100(1+\frac{0.12}{1})^{(1\times5)}[/tex]A = 176.2341683
The balance after 5 years is $176.23
