maggie has $2,674 in an account that earns 5% interest compounded annually. to the nearest cent, how much…

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years. Here, $P=$2674$, $r = 0.05$ (since $5%=0.05$), and $t = 2$.

Step2: Calculate the amount after 2 years

$A=2674\times(1 + 0.05)^2=2674\times(1.05)^2=2674\times1.1025=$2948.085$.

Step3: Calculate the interest earned

The interest earned $I=A - P$. So, $I = 2948.085-2674=$274.085$.

Step4: Round to the nearest cent

Rounding $274.085$ to the nearest cent gives $$274.09$.

Answer:

$274.09$