bernie deposited $2,000 in an account earning 10% interest compounded annually. to the nearest cent, how…

bernie deposited $2,000 in an account earning 10% interest 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.

bernie deposited $2,000 in an account earning 10% interest 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

$p = 2000$, $r=0.1$, $t = 5$

Step2: Substitute into formula

$B=2000\times(1 + 0.1)^{5}$

Step3: Calculate $(1 + 0.1)^{5}$

$(1 + 0.1)^{5}=1.1^{5}=1.61051$

Step4: Calculate $B$

$B=2000\times1.61051 = 3221.02$

Answer:

$3221.02$