We can use the formula for compound interest:
$FV = PV(1 + r)^n$
where $FV$ is the future value, $PV$ is the present value, $r$ is the interest rate, and $n$ is the number of years.
For the initial $40,000, we have:
$FV_1 = 40000(1 + 0.0325)^5$
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