javier deposited $321 in an account earning 5% interest compounded annually. to the nearest cent, how much…

javier deposited $321 in an account earning 5% 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.

javier deposited $321 in an account earning 5% 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

Answer:

$70.37$

Explanation:

Step1: Identify values

$p = 321$, $r=0.05$, $t = 4$

Step2: Calculate the balance $B$

$B=p(1 + r)^t=321\times(1 + 0.05)^4$ $B=321\times(1.05)^4$ $(1.05)^4=1.05\times1.05\times1.05\times1.05 = 1.21550625$ $B=321\times1.21550625=391.17750625$

Step3: Calculate the interest

Interest $=B - p$ Interest $=391.17750625- 321=70.17750625\approx70.37$