Question

Kimberly has $400 in an account that earns 5% interest compounded annually.
To the nearest cent, how much will she 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

Answer 1

B = 400(1 + 0.05)^1 = 400(1.05) = 420.00

So she will have $420.00 after 1 year.