hannah has $2,658 in an account that earns 3% interest compounded annually. to the nearest cent, how much…

hannah has $2,658 in an account that earns 3% interest compounded annually. to the nearest cent, how much interest will she earn in 3 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.

hannah has $2,658 in an account that earns 3% interest compounded annually. to the nearest cent, how much interest will she earn in 3 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 values

$p = 2658$, $r=0.03$, $t = 3$

Step2: Calculate the final balance $B$

$B=p(1 + r)^t=2658\times(1 + 0.03)^3=2658\times1.03^3=2658\times1.092727=2904.478366$

Step3: Calculate the interest earned

Interest $=B - p=2904.478366-2658 = 246.478366\approx246.48$

Answer:

$246.48$