jacob has $2,498 in an account that earns 10% interest compounded annually. to the nearest cent, how much…

jacob has $2,498 in an account that earns 10% 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.

jacob has $2,498 in an account that earns 10% 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

$p = 2498$, $r=0.1$, $t = 3$

Step2: Substitute into formula

$B=2498\times(1 + 0.1)^{3}$

Step3: Calculate exponent

$(1 + 0.1)^{3}=1.1^{3}=1.331$

Step4: Calculate final amount

$B=2498\times1.331 = 3325.838\approx3325.84$

Answer:

$3325.84$