Emmett deposited 90$ 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. $____
Q. Emmett deposited 90$ 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. $____
Identify Values: First, let's identify the values we need to plug into the formula B=p(1+r)t. Principal (p) = $90 Interest rate (r) = 5% or 0.05 as a decimal Time (t) = 2 years
Calculate Balance: Now, let's calculate the balance after 2 years using the formula. B=90(1+0.05)2
Calculate Inside Parentheses: Calculate the value inside the parentheses first. 1+0.05=1.05
Raise to Power: Now raise 1.05 to the power of 2. (1.05)2=1.1025
Multiply Principal: Finally, multiply the principal by the result to find the balance.B=90×1.1025B=$(99.225)
Round Balance: Round the balance to the nearest cent.Final balance = $99.23