simon has $9,538 in an account that earns 10% interest compounded annually. to the nearest cent, how much…

simon has $9,538 in an account that earns 10% interest compounded annually. to the nearest cent, how much will he have in 5 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.

simon has $9,538 in an account that earns 10% interest compounded annually. to the nearest cent, how much will he have in 5 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

$p = 9538$, $r=0.1$, $t = 5$

Step2: Substitute into formula

$B=9538\times(1 + 0.1)^{5}$

Step3: Calculate exponent

$(1 + 0.1)^{5}=1.1^{5}=1.61051$

Step4: Calculate final amount

$B=9538\times1.61051 = 15361.04438$

Step5: Round to nearest cent

$B\approx15361.04$

Answer:

$15361.04$