fernando has $1,608 in an account. the interest rate is 1% compounded annually. to the nearest cent, how…

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $A$ is the final amount, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years.

Step2: Convert the interest rate to decimal

Given $r = 1%=0.01$, $P=$1608$, and $t = 5$ years.

Step3: Substitute values into the formula

$A=1608\times(1 + 0.01)^5$. First, calculate $(1 + 0.01)^5$. Using the exponentiation, $(1.01)^5=1.01\times1.01\times1.01\times1.01\times1.01 = 1.0510100501$. Then, $A = 1608\times1.0510100501$. $A=1608\times1.0510100501 = 1699.0241605608$.

Step4: Round to the nearest cent

Rounding $1699.0241605608$ to the nearest cent gives $$1699.02$.

Answer:

$1699.02$