leroy deposited $8,000 in an account earning 5% interest compounded annually. to the nearest cent, how much…

leroy deposited $8,000 in an account earning 5% 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.

leroy deposited $8,000 in an account earning 5% 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

Answer:

$8820.00$

Explanation:

Step1: Convert interest rate to decimal

$r = 5%=0.05$

Step2: Identify principal and time

$p = 8000$, $t = 2$

Step3: Substitute values into formula

$B=p(1 + r)^t=8000\times(1 + 0.05)^2$

Step4: Calculate $(1 + 0.05)^2$

$(1 + 0.05)^2=1.05^2 = 1.1025$

Step5: Calculate final amount

$B=8000\times1.1025=8820$