simon has $9,538 in an account that earns 10%...
simon has $9,538 in an account that earns 10% interest compounded annually. to the nearest cent, how much will he have in 5 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
$p = 9538$, $r=0.1$, $t = 5$
## Step2: Substitute into formula
$B=9538\times(1 + 0.1)^{5}$
## Step3: Calculate exponent
$(1 + 0.1)^{5}=1.1^{5}=1.61051$
## Step4: Calculate final amount
$B=9538\times1.61051 = 15361.04438$
## Step5: Round to nearest cent
$B\approx15361.04$
# Answer:
$15361.04$