billy deposited $5,000 in an account earning 1% interest compounded annually. to the nearest cent, how much…

billy deposited $5,000 in an account earning 1% interest compounded annually. to the nearest cent, how much interest will he earn in 1 year? 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.

billy deposited $5,000 in an account earning 1% interest compounded annually. to the nearest cent, how much interest will he earn in 1 year? 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

$p = 5000$, $r=0.01$, $t = 1$

Step2: Calculate the balance

$B=p(1 + r)^t=5000\times(1 + 0.01)^1=5000\times1.01 = 5050$

Step3: Calculate the interest

Interest $=B - p=5050-5000 = 50$

Answer:

$50.00$