craig has $4,427 in an account. the interest rate is 2% compounded annually. to the nearest cent, how much…

Explanation:

Step1: Identify 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 (in decimal form), and $t$ is the number of years. Here, $P=$4427$, $r = 0.02$, and $t = 4$.

Step2: Calculate the amount $A$ after 4 years

$A=4427\times(1 + 0.02)^4=4427\times(1.02)^4$. First, calculate $(1.02)^4=1.02\times1.02\times1.02\times1.02 = 1.08243216$. Then, $A = 4427\times1.08243216\approx4791.826272$.

Step3: Calculate the interest earned

The interest earned $I=A - P$. $I\approx4791.826272-4427=$364.83$.

Answer:

$364.83$