eddie has $2,754 in an account that earns 7% interest compounded annually. to the nearest cent, how much…

eddie has $2,754 in an account that earns 7% interest compounded annually. to the nearest cent, how much will he have in 3 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.

eddie has $2,754 in an account that earns 7% interest compounded annually. to the nearest cent, how much will he have in 3 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

$p = 2754$, $r=0.07$, $t = 3$

Step2: Substitute into formula

$B=2754\times(1 + 0.07)^{3}$

Step3: Calculate $(1 + 0.07)^{3}$

$(1 + 0.07)^{3}=1.07^{3}=1.07\times1.07\times1.07 = 1.225043$

Step4: Calculate $B$

$B=2754\times1.225043=3373.778422$

Step5: Round to nearest cent

$B\approx3373.78$

Answer:

$3373.78$