Question

You invest $2,000 in an account that is compounded annually at an interest rate of 5%. You never withdraw money from the account. Which equation below gives the amount of money you will have in the account after t years?

Answer 1

Formula for amount for compound interest:
Amount, A = P(1 + r/100)^n
Where r is rate, P is principal, and n is the number of years.
P = 2000, r = 5, n = t years.
A = 2000( 1 + 5/100)^t
A = 200(1+0.05)^t
A = 2000(1.05)^t
A(t) = 2000(1.05)^t