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

$B=p(1 + r)^t=2000\times(1 + 0.1)^5$

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:

$3221.02$