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? 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.

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? 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 values

$p = 5861$, $r=0.1$, $t = 1$

Step2: Calculate final amount

$B=p(1 + r)^t=5861\times(1 + 0.1)^1=5861\times1.1 = 6447.1$

Step3: Calculate interest

Interest $=B - p=6447.1-5861 = 586.10$

Answer:

$586.10$