valeria deposited $80 in an account earning 5% interest compounded annually. to the nearest cent, how much…

valeria deposited $80 in an account earning 5% interest compounded annually. to the nearest cent, how much interest will she 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.

valeria deposited $80 in an account earning 5% interest compounded annually. to the nearest cent, how much interest will she 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 the values

$p = 80$, $r=0.05$, $t = 2$

Step2: Calculate the balance $B$

$B=p(1 + r)^t=80\times(1 + 0.05)^2=80\times(1.05)^2=80\times1.1025 = 88.2$

Step3: Calculate the interest

Interest $=B - p=88.2-80 = 8.2$

Answer:

$8.20$