Question
Kurt has $9,000 in an account. The interest rate is 5% compounded annually.
To the nearest cent, how much will he have in 1 year?
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 1 year?
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 how much Kurt will have in his account after 1 year with an initial principal of $9,000, an interest rate of 5% compounded annually, we can use the formula:
\[
B = p(1 + r)^t
\]
Where:
- \( B \) = balance after t years
- \( p \) = principal amount ($9,000)
- \( r \) = interest rate (5% or 0.05 as a decimal)
- \( t \) = time in years (1 year)
Plugging in the values:
\[
B = 9000(1 + 0.05)^1
\]
\[
B = 9000(1.05)^1
\]
\[
B = 9000 \times 1.05
\]
\[
B = 9450
\]
To the nearest cent, Kurt will have **$9,450.00** in the account after 1 year.
\[
B = p(1 + r)^t
\]
Where:
- \( B \) = balance after t years
- \( p \) = principal amount ($9,000)
- \( r \) = interest rate (5% or 0.05 as a decimal)
- \( t \) = time in years (1 year)
Plugging in the values:
\[
B = 9000(1 + 0.05)^1
\]
\[
B = 9000(1.05)^1
\]
\[
B = 9000 \times 1.05
\]
\[
B = 9450
\]
To the nearest cent, Kurt will have **$9,450.00** in the account after 1 year.