derek deposited $7,615 in an account earning 10% interest compounded annually. to the nearest cent, how much…

derek deposited $7,615 in an account earning 10% 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.

derek deposited $7,615 in an account earning 10% 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.

Answer

Explanation:

Step1: Identify values

$p = 7615$, $r=0.1$, $t = 2$

Step2: Substitute into formula

$B=7615\times(1 + 0.1)^{2}$

Step3: Calculate inside parentheses first

$1+0.1 = 1.1$

Step4: Calculate exponent

$1.1^{2}=1.21$

Step5: Multiply

$B = 7615\times1.21=9214.15$

Answer:

$9214.15$