Question

Zane deposited $3,000 in an account earning 11% interest compounded annually.
To the nearest cent, how much will he have in 4 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.
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Answers

GPT-4o mini
To find the balance \( B \) after 4 years, we can use the formula:

\[
B = p(1 + r)^t
\]

where:
- \( p = 3000 \) (the principal amount),
- \( r = 0.11 \) (the interest rate expressed as a decimal: 11% = 0.11),
- \( t = 4 \) (the time in years).

Now, substituting the values into the formula:

\[
B = 3000(1 + 0.11)^4
\]

Calculating \( (1 + 0.11) \):

\[
1 + 0.11 = 1.11
\]

Now raising \( 1.11 \) to the power of 4:

\[
1.11^4 \approx 1.4641
\]

Now multiply this by the principal \( p \):

\[
B = 3000 \times 1.4641 \approx 4392.30
\]

Thus, to the nearest cent, Zane will have:

\[
\boxed{4392.30}
\]

after 4 years.