ruth has $4,942 in an account that earns 12% interest compounded annually. to the nearest cent, how much…

ruth has $4,942 in an account that earns 12% interest compounded annually. to the nearest cent, how much will she 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.

ruth has $4,942 in an account that earns 12% interest compounded annually. to the nearest cent, how much will she 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

$p = 4942$, $r=0.12$, $t = 1$

Step2: Substitute into formula

$B=p(1 + r)^t=4942\times(1 + 0.12)^1$

Step3: Calculate result

$B=4942\times1.12 = 5535.04$

Answer:

$5535.04$