Question
Leroy deposited $8,000 in an account earning 5% interest compounded annually.
To the nearest cent, how much will he have in 2 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 2 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 how much Leroy will have in 2 years, we can use the compound interest formula:
\[
B = p(1 + r)^t
\]
Where:
- \( p = 8000 \) (the principal amount)
- \( r = 0.05 \) (the interest rate expressed as a decimal)
- \( t = 2 \) (the time in years)
Now, let's plug the values into the formula:
\[
B = 8000(1 + 0.05)^2
\]
Calculating \( (1 + 0.05)^2 \):
\[
1.05^2 = 1.1025
\]
Now substituting this back into the formula:
\[
B = 8000 \times 1.1025
\]
Now, compute the final amount:
\[
B = 8818.00
\]
To the nearest cent, Leroy will have **$8,818.00** in 2 years.
\[
B = p(1 + r)^t
\]
Where:
- \( p = 8000 \) (the principal amount)
- \( r = 0.05 \) (the interest rate expressed as a decimal)
- \( t = 2 \) (the time in years)
Now, let's plug the values into the formula:
\[
B = 8000(1 + 0.05)^2
\]
Calculating \( (1 + 0.05)^2 \):
\[
1.05^2 = 1.1025
\]
Now substituting this back into the formula:
\[
B = 8000 \times 1.1025
\]
Now, compute the final amount:
\[
B = 8818.00
\]
To the nearest cent, Leroy will have **$8,818.00** in 2 years.