eva deposited $50 in an account earning 10% i...
eva deposited $50 in an account earning 10% interest compounded annually. to the nearest cent, how much interest will she 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
$p = 50$, $r=0.1$, $t = 2$
## Step2: Calculate the balance
$B=p(1 + r)^t=50\times(1 + 0.1)^2=50\times1.1^2=50\times1.21 = 60.5$
## Step3: Calculate the interest
Interest $=B - p=60.5-50 = 10.5$
# Answer:
$10.50$