kurt has $9,000 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much…

kurt has $9,000 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much will he have in 1 year? 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.

kurt has $9,000 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much will he have in 1 year? 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

$p = 9000$, $r=0.05$, $t = 1$

Step2: Substitute into formula

$B=p(1 + r)^t=9000\times(1 + 0.05)^1$

Step3: Calculate result

$B=9000\times1.05=9450.00$

Answer:

$9450.00$