Question

Correct answers only!

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

Answer: $44.10

Explanation:

We are given our p, r, t in the problem.

p=40 (starting amount)

r=0.05 (5%)

t=2 (years)

With the given information, we can plug this into our equation.

B=p(1+r)^t

B=40(1+0.05)^2

B=44.1