debbie has $4,000 in an account. the interest rate is 15% compounded annually. to the nearest cent, how much…

Explanation:

Step1: Recall 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=$4000$, $r = 0.15$, and $t = 2$.

Step2: Calculate the amount after 2 years

$A=4000\times(1 + 0.15)^2=4000\times(1.15)^2=4000\times1.3225 = 5290$.

Step3: Calculate the interest earned

The interest earned $I=A - P$. So, $I = 5290-4000=1290$.

Answer:

$1290.00$