Question

martin has $3,582 in an account that earns 5% interest compounded annually.
to the nearest cent, how much will he 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.
$\\$$square$

Explanation:

Step1: Identify values

$p = 3582$, $r = 0.05$ (5% as decimal), $t = 1$

Step2: Apply formula

$B = p(1 + r)^t = 3582(1 + 0.05)^1$

Step3: Calculate

$1 + 0.05 = 1.05$, so $B = 3582×1.05 = 3761.1$

Answer:

$3761.10$