franco has $80 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much…

franco has $80 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much will he 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.

franco has $80 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much will he 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.

Answer

Explanation:

Step1: Identify values

$p = 80$, $r=0.05$, $t = 3$

Step2: Substitute into formula

$B=80\times(1 + 0.05)^{3}$

Step3: Calculate $(1 + 0.05)^{3}$

$(1 + 0.05)^{3}=1.05^{3}=1.05\times1.05\times1.05 = 1.157625$

Step4: Calculate $B$

$B=80\times1.157625=92.61$

Answer:

$92.61$