nate deposited $1,000 in an account earning 5% interest compounded annually. to the nearest cent, how much…

nate deposited $1,000 in an account earning 5% interest compounded annually. to the nearest cent, how much will he have in 4 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.

nate deposited $1,000 in an account earning 5% interest compounded annually. to the nearest cent, how much will he have in 4 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

$p = 1000$, $r=0.05$, $t = 4$

Step2: Substitute into formula

$B = 1000(1 + 0.05)^{4}$

Step3: Calculate exponent

$(1 + 0.05)^{4}=1.05^{4}=1.21550625$

Step4: Calculate final amount

$B=1000\times1.21550625 = 1215.50625$

Answer:

$1215.51$