dalton deposited $7,000 in an account earning 10% interest compounded annually. to the nearest cent, how…

dalton deposited $7,000 in an account earning 10% interest compounded annually. to the nearest cent, how much interest will he earn in 4 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.

dalton deposited $7,000 in an account earning 10% interest compounded annually. to the nearest cent, how much interest will he earn in 4 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

$p = 7000$, $r=0.1$, $t = 4$

Step2: Calculate the final amount $B$

$B=p(1 + r)^t=7000\times(1 + 0.1)^4=7000\times1.1^4=7000\times1.4641 = 10248.7$

Step3: Calculate the interest

Interest $=B - p=10248.7-7000 = 3248.7$

Answer:

$3248.70$