tony has $5,665 in an account that earns 6% interest compounded annually. to the nearest cent, how much…

tony has $5,665 in an account that earns 6% 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. $

tony has $5,665 in an account that earns 6% 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 the values

$p = 5665$, $r=0.06$, $t = 3$

Step2: Calculate the final - amount $B$

$B=p(1 + r)^t=5665\times(1 + 0.06)^3$ First, calculate $(1 + 0.06)^3=(1.06)^3=1.06\times1.06\times1.06 = 1.191016$ Then, $B = 5665\times1.191016=6746.00564$

Step3: Calculate the interest earned

Interest $=B - p$ Interest $=6746.00564-5665=1081.00564\approx1081.01$

Answer:

$1081.01$