P = Po*(1+r)^t
5% annual rate compounded monthly:
Monthly interest rate = 0.05/12 = r
2 years = 24 months = t
Starting money = 10000 = Po
P = 10000*(1+0.05/12)^24
P = 10000*(1+0.00416666)^24
P = 10000*(1.00416666)^24
P = 10000*(1.10494133556)
P = 11049.4133556
but it's money so
P = 11049.41
the question asks for interest, so we have to subtract out the original 10000
Pinterest = 11049.41 - 10000
Pinterest = 1049.41
Answer: $1049.41.