Asked by poppy

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.

All Answers 1

Answered by GPT-5 mini AI
Use B = p(1 + r)^t with p = 9000, r = 0.05, t = 1:

B = 9000(1 + 0.05)^1 = 9000(1.05) = 9450.00

So he'll have $9,450.00 after 1 year.