craig has $4,427 in an account. the interest rate is 2% compounded annually. to the nearest cent, how much…

craig has $4,427 in an account. the interest rate is 2% compounded annually. to the nearest cent, how much will he have in 4 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.

craig has $4,427 in an account. the interest rate is 2% compounded annually. to the nearest cent, how much will he have in 4 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

$p = 4427$, $r=0.02$, $t = 4$

Step2: Substitute into formula

$B=4427\times(1 + 0.02)^{4}$

Step3: Calculate $(1 + 0.02)^{4}$

$(1 + 0.02)^{4}=1.02^{4}=1.08243216$

Step4: Calculate $B$

$B=4427\times1.08243216\approx4791.826272$

Answer:

$4791.83$