The compound interest formula is:
[tex]V(t)=A_{0^{}}(1+r)^t[/tex]
Where
V(t) is the final value after time t
A0 is the initial value
r is the rate of interest, in decimal
Given, initial investment = 2000 and rate is 2%, which is 2/100 = 0.02, let's find the equation:
[tex]\begin{gathered} V(t)=2000(1+0.02)^t \\ V(t)=2000(1.02)^t \end{gathered}[/tex]
