dalton deposited $7,000 in an account earning 10% interest compounded annually. to the nearest cent, how…

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years. Here, $P=$7000$, $r = 0.1$ (since $10%=0.1$), and $t = 4$.

Step2: Calculate the amount $A$

$A=7000\times(1 + 0.1)^4=7000\times(1.1)^4$. $(1.1)^4=1.1\times1.1\times1.1\times1.1 = 1.4641$. So, $A = 7000\times1.4641=$10248.7$.

Step3: Calculate the interest $I$

The interest $I$ is the difference between the final amount $A$ and the principal $P$. So, $I=A - P$. $I=10248.7−7000=$3248.70$.

Answer:

$3248.70$