clayton deposited $1,132 in an account earning 12% interest compounded annually. to the nearest cent, how…

clayton deposited $1,132 in an account earning 12% 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.

clayton deposited $1,132 in an account earning 12% 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

$p = 1132$, $r=0.12$, $t = 5$

Step2: Substitute into formula

$B=1132\times(1 + 0.12)^{5}$

Step3: Calculate $(1 + 0.12)^{5}$

$(1 + 0.12)^{5}=1.12^{5}=1.7623416832$

Step4: Calculate $B$

$B=1132\times1.7623416832\approx1995.97$

Answer:

$1995.97$