omar has $8,815 in an account that earns 10% interest compounded annually. to the nearest cent, how much…

omar has $8,815 in an account that earns 10% interest compounded annually. to the nearest cent, how much interest will he 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.

omar has $8,815 in an account that earns 10% interest compounded annually. to the nearest cent, how much interest will he 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

$p = 8815$, $r=0.1$, $t = 1$

Step2: Calculate final amount

$B=p(1 + r)^t=8815\times(1 + 0.1)^1=8815\times1.1 = 9696.5$

Step3: Calculate interest

Interest $=B - p=9696.5-8815 = 881.50$

Answer:

$881.50$