annie has $9,000 in an account that earns 5% interest compounded annually. to the nearest cent, how much…

annie has $9,000 in an account that earns 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.

annie has $9,000 in an account that earns 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 values

$p = 9000$, $r=0.05$, $t = 2$

Step2: Calculate the final amount $B$

$B=p(1 + r)^t=9000\times(1 + 0.05)^2=9000\times1.05^2=9000\times1.1025 = 9922.5$

Step3: Calculate the interest

Interest $=B - p=9922.5-9000=922.5$

Answer:

$922.50$