leroy deposited $8,000 in an account earning 5% interest compounded annually. to the nearest cent, how much…

leroy deposited $8,000 in an account earning 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.

leroy deposited $8,000 in an account earning 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

$p = 8000$, $r=0.05$, $t = 2$

Step2: Substitute into formula

$B=8000\times(1 + 0.05)^{2}$

Step3: Calculate exponent

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

Step4: Calculate final amount

$B = 8000\times1.1025=8820$

Answer:

$8820.00$