annie has $9,000 in an account that earns 5% interest compounded annually. to the nearest cent, how much…

Answer:

$922.50

Explanation:

Step1: Recall compound - interest formula

$A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $t$ is the number of years. Here, $P=$9000$, $r = 0.05$, and $t = 2$.

Step2: Calculate the amount after 2 years

$A=9000\times(1 + 0.05)^2=9000\times(1.05)^2=9000\times1.1025=$9922.50$.

Step3: Calculate the interest earned

Interest $=A - P$. So, Interest $=9922.50−9000=$922.50$.