rafi has $6,629 in an account that earns 10% interest compounded annually. to the nearest cent, how much…

rafi has $6,629 in an account that earns 10% interest compounded annually. to the nearest cent, how much interest will he earn in 4 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.

rafi has $6,629 in an account that earns 10% interest compounded annually. to the nearest cent, how much interest will he earn in 4 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

Answer:

$3045.68$

Explanation:

Step1: Identify values

$p = 6629$, $r=0.1$, $t = 4$

Step2: Calculate final amount $B$

$B=p(1 + r)^t=6629\times(1 + 0.1)^4=6629\times1.1^4=6629\times1.4641=9674.68$

Step3: Calculate interest

Interest $=B - p=9674.68-6629 = 3045.68$