Question

Joseph deposited $60 in an account earning 10% interest compounded annually.To the nearest cent, how much will he have in 2 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

Solution:

Using;

$\begin{gathered} B=p(1+r)^t \\ \\ \text{ Where }p=60,r=10\text{ \%}=0.1,t=2 \end{gathered}$$\begin{gathered} B=60(1+0.1)^2 \\ \\ B=72.6 \end{gathered}$

ANSWER: $72.6