Suppose that 2000 is loaned at a rate of 18% compounded monthly. Assuming that no payments are made,find the amount owed after 5 years. Do not round any Intermediate computations, and round your answer to the nearest cent. square

To solve this problem, we will use the formula for compound interest: where:- is the amount of money accumulated after n years, including interest.- is the principal amount (the initial amount of money).- is the annual interest rate (decimal).- is the number of times that interest is compounded per year.- is the time the money is invested for in years.Given:- dollars- - (since the interest is compounded monthly)- yearsNow, plug these values into the formula: First, calculate the monthly interest rate: Next, add 1 to the monthly interest rate: Then, raise this to the power of the total number of compounding periods (12 months/year * 5 years): Using a calculator to find : Finally, multiply this by the principal amount: So, the amount owed after 5 years is approximately .