Suppose a homeowner borrows $2,000 from a lender that charges 4% interest on the unpaid balance at the end of every year, and the homeowner does not make any payments. What expression can we write to show the amount owed after `x` years?
Remember: LaTeX: y=a\cdot b^xy = a ⋅ b x
y is the total amount
a is the starting amount
b is the growth factor (you'll need to add 1 whole to the percent)
x is time in years