simon has $9,594 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much…

simon has $9,594 in an account. the interest rate is 5% 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.

simon has $9,594 in an account. the interest rate is 5% 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

$p = 9594$, $r=0.05$, $t = 2$

Step2: Substitute into formula

$B=9594\times(1 + 0.05)^{2}$

Step3: Calculate $(1 + 0.05)^{2}$

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

Step4: Calculate $B$

$B=9594\times1.1025 = 10577.385$

Answer:

$10577.39$