Answer: A = 2000(1.05)^5
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1 + r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = $2000
r = 5% = 5/100 = 0.05
n = 1 because it was compounded once in a year.
t = 5 years
Therefore, the equation that shows how much money will be in the account after five years is
A = 2000(1 + 0.05/1)^1 × 5
A = 2000(1.05)^5
