edgar has $7,000 in an account that earns 15% 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=$7000$, $r = 0.15$, and $t = 3$.

Step2: Calculate the amount $A$

$A=7000\times(1 + 0.15)^3=7000\times(1.15)^3$. First, calculate $(1.15)^3=1.15\times1.15\times1.15 = 1.520875$. Then, $A = 7000\times1.520875=10646.125$.

Step3: Calculate the interest $I$

The interest $I$ is the difference between the final amount $A$ and the principal $P$. So, $I=A - P$. $I=10646.125−7000 = 3646.125$. Rounding to the nearest cent, $I\approx3646.13$.

Answer:

$3646.13$