aiden has $6,000 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much…

aiden has $6,000 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much will he have in 5 years? use the formula $b = p(1 + r)^t$, where $b$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, and $t$ is the time in years.

aiden has $6,000 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much will he have in 5 years? use the formula $b = p(1 + r)^t$, where $b$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, and $t$ is the time in years.

Answer

Answer:

$7657.69$

Explanation:

Step1: Identify values

$p = 6000$, $r=0.05$, $t = 5$

Step2: Substitute into formula

$B=6000(1 + 0.05)^{5}$

Step3: Calculate exponent

$(1 + 0.05)^{5}=1.05^{5}=1.27628$

Step4: Calculate final amount

$B = 6000\times1.27628=7657.68$ Rounding to nearest cent gives $7657.69$.