ezra has $5,061 in an account that earns 11% interest compounded annually. to the nearest cent, how much…

ezra has $5,061 in an account that earns 11% interest compounded annually. to the nearest cent, how much interest will he earn in 5 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.

ezra has $5,061 in an account that earns 11% interest compounded annually. to the nearest cent, how much interest will he earn in 5 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

Answer:

$3582.97$

Explanation:

Step1: Identify values

$p = 5061$, $r=0.11$, $t = 5$

Step2: Calculate final balance

$B=p(1 + r)^t=5061\times(1 + 0.11)^5$ $B = 5061\times(1.11)^5$ $(1.11)^5=1.11\times1.11\times1.11\times1.11\times1.11 = 1.62572$ $B=5061\times1.62572\approx8643.97$

Step3: Calculate interest

Interest $=B - p$ Interest $=8643.97- 5061=3582.97$