Intrest money, prealgebra

Question

David deposited $10,000 in an account that pays 5 percent interest compounded annually. Using a calculator and the formula A_n = A₀* (1 + r) ⁿ determine how much money had been earned after the first 10 years.

Answer 1

A=10,000(1.05)^10

= $16,288.94

interest earned = $6,288.94 rounded off to nearest cent

Answer 2

A₀=10000

r = 0.05

n = 10

Just plug in the numbers into the formula to calculate A₁₀.

The problem is asking for the money earned, not the ending amount. Be sure to subtract out the initial deposit from A₁₀ to get the money earned in interest.