josie has $4,000 in an account that earns 5% interest compounded annually. to the nearest cent, how much…

josie has $4,000 in an account that earns 5% interest 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.

josie has $4,000 in an account that earns 5% interest 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

Answer:

$200.00

Explanation:

Step1: Identify values

$p = 4000$, $r=0.05$, $t = 1$

Step2: Calculate balance

$B=p(1 + r)^t=4000\times(1 + 0.05)^1=4000\times1.05 = 4200$

Step3: Calculate interest

Interest = $B - p=4200-4000 = 200$