darrell has $4,873 in an account that earns 5% interest compounded annually. to the nearest cent, how much…

darrell has $4,873 in an account that earns 5% interest compounded annually. to the nearest cent, how much will he have in 2 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.

darrell has $4,873 in an account that earns 5% interest compounded annually. to the nearest cent, how much will he have in 2 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

$p = 4873$, $r=0.05$, $t = 2$

Step2: Substitute into formula

$B=4873\times(1 + 0.05)^{2}$

Step3: Calculate exponent

$(1 + 0.05)^{2}=1.05^{2}=1.1025$

Step4: Calculate final amount

$B=4873\times1.1025 = 5372.4825$

Answer:

$5372.48$