malik deposited $2,439 in an account earning 7% interest compounded annually. to the nearest cent, how much…

malik deposited $2,439 in an account earning 7% interest compounded annually. to the nearest cent, how much interest will he earn in 3 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.

malik deposited $2,439 in an account earning 7% interest compounded annually. to the nearest cent, how much interest will he earn in 3 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

Explanation:

Step1: Identify values

$p = 2439$, $r=0.07$, $t = 3$

Step2: Calculate final balance

$B=p(1 + r)^t=2439\times(1 + 0.07)^3=2439\times(1.07)^3=2439\times1.225043=2987.879877$

Step3: Calculate interest

Interest $=B - p=2987.879877-2439 = 548.879877\approx548.88$

Answer:

$548.88$