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

Explanation:

Step1: Identify values

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

Step2: Substitute into formula

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

Step3: Calculate $(1 + 0.05)^{5}$

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

Step4: Calculate $B$

$B = 6000\times1.27628=7657.68$

Answer:

$7657.68$