Answer:
[tex]A(t) = 2,000(1.05)^{t}[/tex]
Step-by-step explanation:
The compound interest formula is given by:
[tex]A(t) = P(1 + \frac{r}{n})^{nt}[/tex]
Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.
You invest $2,000
This means that [tex]P = 2,000[/tex]
Compounded anually
Once a year, so [tex]n = 1[/tex]
Interest rate of 5%.
This means that [tex]r = 0.05[/tex]
Amount after t years:
[tex]A(t) = P(1 + \frac{r}{n})^{nt}[/tex]
[tex]A(t) = 2,000(1 + \frac{0.05}{1})^{t}[/tex]
[tex]A(t) = 2,000(1.05)^{t}[/tex]
