Evelyn has 90$ in an account. The interest rate is 5% compounded annually. To the nearest cent, how much will she have in 3 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. $____
Q. Evelyn has 90$ in an account. The interest rate is 5% compounded annually. To the nearest cent, how much will she have in 3 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: Identify the values for the formula B=p(1+r)t. Principal (p) = $90 Interest rate (r) = 5% or 0.05 as a decimal Time (t) = 3 years
Plug Values into Formula: Plug the values into the formula to calculate the balance after 3 years. B=90(1+0.05)3
Calculate (1+r)t: Calculate the value of (1+r)t.(1+0.05)3=1.053
Calculate 1.053: Calculate 1.053.1.053=1.157625
Multiply Principal: Multiply the principal by the result from step 4.B=90×1.157625
Perform Multiplication: Perform the multiplication to find the final balance. B=104.18625
Round Final Balance: Round the final balance to the nearest cent. B≈$104.19