jack has $1,331 in an account that earns 5% interest compounded annually. to the nearest cent, how much will…

jack has $1,331 in an account that earns 5% interest 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.

jack has $1,331 in an account that earns 5% interest 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

$p = 1331$, $r=0.05$, $t = 3$

Step2: Substitute into formula

$B=p(1 + r)^t=1331\times(1 + 0.05)^3$

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

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

Step4: Calculate $B$

$B=1331\times1.157625=1549.898875$

Step5: Round to nearest cent

$B\approx1549.90$

Answer:

$1549.90$