polly has $10 in an account that earns 5% interest compounded annually. to the nearest cent, how much will…

polly has $10 in an account that earns 5% interest compounded annually. to the nearest cent, how much will she 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.

polly has $10 in an account that earns 5% interest compounded annually. to the nearest cent, how much will she 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

$p = 10$, $r=0.05$, $t = 2$

Step2: Substitute into formula

$B=p(1 + r)^t=10\times(1 + 0.05)^2$

Step3: Calculate $(1 + 0.05)^2$

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

Step4: Calculate $B$

$B = 10\times1.1025=11.025$

Answer:

$11.03$