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 the values

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

Step2: Calculate the balance

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

Step3: Calculate the interest

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

Answer:

$881.50$