you invest $2,000 in an account that is compounded at an interest rate of 5%. You never withdraw money from the account. How much money will be in the account after 5 years?
Can someone please show me how to do this?

Question

you invest $2,000 in an account that is compounded at an interest rate of 5%. You never withdraw money from the account. How much money will be in the account after 5 years? 
Can someone please show me how to do this?

anonymous · Answer

How often does it compound? Monthly, yearly, continuously, quarterly?

anonymous · Answer

the problem doesn't say.

anonymous · Answer

I'm assuming it's yearly interest then, in which case you will use this formula.
$$I= p \times r \times t$$
I=interest
P=principal (starting amount of money)
r=interest rate
t=time
I= $2000 * 0.05 *5 (years)=$500
$2000+$500=$2500.