spencer deposited $10 in an account earning 5% interest compounded annually. to the nearest cent, how much…

spencer deposited $10 in an account earning 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.

spencer deposited $10 in an account earning 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

$p = 10$, $r=0.05$, $t = 3$

Step2: Substitute into formula

$B=10\times(1 + 0.05)^{3}$

Step3: Calculate exponent

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

Step4: Calculate final amount

$B=10\times1.157625=11.57625\approx11.58$

Answer:

$11.58$