Question
Franco has $80 in an account. The interest rate is 5% 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.
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.
Answers
GPT-4o mini
To calculate the balance in Franco's account after 3 years using the formula \( B = p(1 + r)^t \):
1. Identify the variables:
- \( p = 80 \) (the principal amount)
- \( r = 0.05 \) (the interest rate as a decimal)
- \( t = 3 \) (the time in years)
2. Substitute the values into the formula:
\[
B = 80(1 + 0.05)^3
\]
3. Calculate \( (1 + 0.05) \):
\[
1 + 0.05 = 1.05
\]
4. Raise \( 1.05 \) to the power of 3:
\[
(1.05)^3 = 1.157625
\]
5. Multiply by the principal:
\[
B = 80 \times 1.157625 = 92.610
\]
6. Round to the nearest cent:
\[
B \approx 92.61
\]
Therefore, after 3 years, Franco will have approximately **$92.61** in his account.
1. Identify the variables:
- \( p = 80 \) (the principal amount)
- \( r = 0.05 \) (the interest rate as a decimal)
- \( t = 3 \) (the time in years)
2. Substitute the values into the formula:
\[
B = 80(1 + 0.05)^3
\]
3. Calculate \( (1 + 0.05) \):
\[
1 + 0.05 = 1.05
\]
4. Raise \( 1.05 \) to the power of 3:
\[
(1.05)^3 = 1.157625
\]
5. Multiply by the principal:
\[
B = 80 \times 1.157625 = 92.610
\]
6. Round to the nearest cent:
\[
B \approx 92.61
\]
Therefore, after 3 years, Franco will have approximately **$92.61** in his account.