chandler has $30 in an account that earns 10% interest compounded annually. to the nearest cent, how much…

chandler has $30 in an account that earns 10% interest compounded annually. to the nearest cent, how much interest will he earn 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.

chandler has $30 in an account that earns 10% interest compounded annually. to the nearest cent, how much interest will he earn 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

Explanation:

Step1: Identify the values of p, r, and t

$p = 30$, $r=0.1$, $t = 2$

Step2: Substitute values into the compound - interest formula

$B=p(1 + r)^t=30\times(1 + 0.1)^2$ $B=30\times(1.1)^2$ $B=30\times1.21$ $B = 36.3$

Step3: Calculate the interest earned

Interest = $B - p$ Interest=$36.3-30$ Interest = $6.30$

Answer:

$6.30$