Question

Maggie has $30 in an account. The interest rate is 10% 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

Using the formula;

`\begin{gathered} B=p(1+r)^t \\ \\ \text{ Where }B=balance,p=principal,r=rate,t=time \end{gathered}`
`p=30,r=10\text{ \%}=0.1,t=1`

Thus;

`\begin{gathered} B=30(1+0.1)^1 \\ \\ B=33 \end{gathered}`

ANSWER: $33