brendan deposited $3,967 in an account earning 5% interest compounded annually. to the nearest cent, how…

Explanation:

Step1: Recall compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $t$ is the number of years. Here, $P=$3967$, $r = 0.05$, and $t = 5$. First, calculate the amount $A$. $A=3967\times(1 + 0.05)^5$ $A=3967\times(1.05)^5$ $(1.05)^5=1.05\times1.05\times1.05\times1.05\times1.05 = 1.27628$ $A=3967\times1.27628\approx5063.00$

Step2: Calculate the interest

The interest $I$ is the difference between the final amount $A$ and the principal $P$. $I=A - P$ $I\approx5063.00-3967$ $I\approx1096.00$

Answer:

$1096.00$