eva deposited $50 in an account earning 10% interest compounded annually. to the nearest cent, how much…

eva deposited $50 in an account earning 10% interest compounded annually. to the nearest cent, how much interest will she 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.

eva deposited $50 in an account earning 10% interest compounded annually. to the nearest cent, how much interest will she 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

$p = 50$, $r=0.1$, $t = 2$

Step2: Calculate the balance $B$

$B=p(1 + r)^t=50\times(1 + 0.1)^2=50\times1.1^2=50\times1.21 = 60.5$

Step3: Calculate the interest

Interest $=B - p=60.5-50 = 10.5$

Answer:

$10.50$