Question

Jacob has $2,498 in an account that earns 10% interest compounded annually.
To the nearest cent, how much will he have in 3 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.
$

Answer 1

B = 2498(1 + 0.10)^3 = 2498(1.1)^3 = 2498(1.331) = 3324.838

To the nearest cent: $3,324.84.