Question

Josh has $215 in an account. The interest rate is 14% 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 = 215(1 + 0.14)^3 = 215(1.14)^3 = 215(1.481544) = 318.53196

To the nearest cent: $318.53