rodrigo has $5,617 in an account that earns 10% interest compounded annually. to the nearest cent, how much…

rodrigo has $5,617 in an account that earns 10% interest compounded annually. to the nearest cent, how much interest will he earn in 2 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.

rodrigo has $5,617 in an account that earns 10% interest compounded annually. to the nearest cent, how much interest will he earn in 2 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

$p = 5617$, $r=0.1$, $t = 2$

Step2: Calculate the balance

$B=p(1 + r)^t=5617\times(1 + 0.1)^2=5617\times1.1^2=5617\times1.21 = 6896.57$

Step3: Calculate the interest

Interest $=B - p=6896.57-5617 = 1279.57$

Answer:

$1279.57$