dakota deposited $500 in an account earning 10% interest 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=$500$, $r = 0.10$ (since $10%=0.10$), and $t = 3$.

Step2: Calculate the amount $A$

$A=500\times(1 + 0.10)^3=500\times(1.10)^3=500\times1.331 = 665.5$.

Step3: Calculate the interest $I$

The interest $I$ is the difference between the final amount $A$ and the principal $P$. So, $I=A - P$. Substituting the values, we get $I=665.5−500 = 165.50$.

Answer:

$165.50$