Peter has $2000 invested in an account that gives him 5% interest a year. Write an equation for the amount of money, m, in his account after y, years. How much money will be in his account in 10 years, if he does not put any more in or take any out?

Answer 1

for compound interest

m = 2000 (1 + .05)^y

plug in 10 for y

Answer 2

What is the compounding frequency? Is it daily, monthly, or annually? We can't do compounded int. without knowing the frequency.