chandler has $30 in an account that earns 10%...
chandler has $30 in an account that earns 10% interest compounded annually. to the nearest cent, how much interest will he 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 of p, r, and t
$p = 30$, $r=0.1$, $t = 2$
## Step2: Substitute values into the compound - interest formula
$B=p(1 + r)^t=30\times(1 + 0.1)^2$
$B=30\times(1.1)^2$
$B=30\times1.21$
$B = 36.3$
## Step3: Calculate the interest earned
Interest = $B - p$
Interest=$36.3-30$
Interest = $6.30$
# Answer:
$6.30$