math alebra 1 help

Question

Bernie deposited 

$

2,000

 in an account earning 10% interest compounded annually.

To the nearest cent, how much will he have in 5 years?

Answer 1

The formula for compound interest is:

A(t) = A₀·(1 + r/n)^nt

1. A(t) = amount of money after t years
2. A₀ = starting amount of money = $2000
3. r = interest rate expressed as a decimal = 10% = 0.10
4. n = number of compounding per year = annual = 1
5. t = years = 5

Plug the number values into the formula and use your calculator to compute the answer.