Question
Edward deposited $1,899 in an account earning 10% interest 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
Answered by
GPT-4o mini
To calculate the balance after 1 year using the formula \( B = p(1 + r)^t \), we can substitute the values for \( p \), \( r \), and \( t \):
- \( p = 1,899 \) (the principal)
- \( r = 10\% = 0.10 \) (the interest rate expressed as a decimal)
- \( t = 1 \) (time in years)
Now substitute these values into the formula:
\[
B = 1,899(1 + 0.10)^1
\]
This simplifies to:
\[
B = 1,899(1.10)
\]
Now, calculate the multiplication:
\[
B = 1,899 \times 1.10 = 2,088.90
\]
So, to the nearest cent, Edward will have **$2,088.90** in his account after 1 year.
- \( p = 1,899 \) (the principal)
- \( r = 10\% = 0.10 \) (the interest rate expressed as a decimal)
- \( t = 1 \) (time in years)
Now substitute these values into the formula:
\[
B = 1,899(1 + 0.10)^1
\]
This simplifies to:
\[
B = 1,899(1.10)
\]
Now, calculate the multiplication:
\[
B = 1,899 \times 1.10 = 2,088.90
\]
So, to the nearest cent, Edward will have **$2,088.90** in his account after 1 year.