haley has $5,861 in an account. the interest rate is 10% compounded annually. to the nearest cent, how much…

haley has $5,861 in an account. the interest rate is 10% compounded annually. to the nearest cent, how much interest will she earn in 1 year?

haley has $5,861 in an account. the interest rate is 10% compounded annually. to the nearest cent, how much interest will she earn in 1 year?

Answer

Explanation:

Step1: Identify the principal and rate

Principal $P = 5861$, rate $r=0.10$ (since 10% = 0.10).

Step2: Use simple - interest formula

The formula for simple interest when compounded annually for 1 year is $I = Prt$. Since $t = 1$ year, $I=P\times r\times1$. $I=5861\times0.10$ $I = 586.10$

Answer:

$586.10$