pablo deposited $600 in an account earning 2% interest compounded annually. to the nearest cent, how much…

pablo deposited $600 in an account earning 2% 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.

pablo deposited $600 in an account earning 2% 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

$p = 600$, $r=0.02$, $t = 3$

Step2: Calculate the final amount $B$

$B=p(1 + r)^t=600\times(1 + 0.02)^3=600\times(1.02)^3=600\times1.061208 = 636.7248$

Step3: Calculate the interest

Interest $=B - p=636.7248-600=36.7248\approx36.72$

Answer:

$36.72$