Question

Correct answers only please!

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

$86.25

Explanation:

B = p(1 + r)t must be written as B = p(1 + r)^t. The "^t" denotes exponentiation.

Then, with B = p(1 + r)^t, we need to insert $70 for p, 0.11 for r and 2 for t:

B = $70(1 + 0.11)^2 = $86.25

Answer 2

Answer: $86.25

Explanation:

For this problem, we are given p, r, t.

p=70 (starting amount)

r=0.11 (11%)

t=2 (years)

We can plug this into the equation B=p(1+r)^t

B=70(1+0.11)^2

B=86.247

Sam would have $86.25