jack has $1,331 in an account that earns 5% interest compounded annually. to the nearest cent, how much will…

jack has $1,331 in an account that earns 5% 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.

jack has $1,331 in an account that earns 5% 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

$p = 1331$, $r=0.05$, $t = 3$

Step2: Substitute into formula

$B=1331\times(1 + 0.05)^{3}$

Step3: Calculate $(1 + 0.05)^{3}$

$(1 + 0.05)^{3}=1.05^{3}=1.05\times1.05\times1.05 = 1.157625$

Step4: Calculate $B$

$B=1331\times1.157625=1540.808875\approx1540.81$

Answer:

$1540.81$