ashley has $5,000 in an account that earns 5% interest compounded annually. to the nearest cent, how much…

ashley has $5,000 in an account that earns 5% interest compounded annually. to the nearest cent, how much will she have in 3 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.

ashley has $5,000 in an account that earns 5% interest compounded annually. to the nearest cent, how much will she have in 3 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:

$5788.13$

Explanation:

Step1: Identify values

$p = 5000$, $r=0.05$, $t = 3$

Step2: Substitute into formula

$B=5000\times(1 + 0.05)^{3}$

Step3: Calculate exponent

$(1 + 0.05)^{3}=1.05^{3}=1.157625$

Step4: Calculate final amount

$B = 5000\times1.157625=5788.125\approx5788.13$