Solve $A=1000(1.05{)}^{10}$

Step-by-step solution

1. Step 1 · Compound interest formula
   $$A=P(1+r{)}^t$$

   Growth by a constant percentage each period is exponential.

2. Step 2 · Substitute values
   $$A=1000(1.05{)}^{10}$$

   r = 0.05 and t = 10 annual periods.

3. Step 3 · Evaluate
   $$A\approx 1628.89$$

   Interest earned is about $628.89ontheoriginal$1000.