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

javier deposited $321 in an account earning 5% interest compounded annually.\nto the nearest cent, how much interest will he earn in 4 years?\nuse 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.\n$\\square$

javier deposited $321 in an account earning 5% interest compounded annually.\nto the nearest cent, how much interest will he earn in 4 years?\nuse 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.\n$\\square$

Answer

Explanation:

Step1: Identify given values

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

Step2: Calculate final balance $B$

$$B = 321(1 + 0.05)^4 = 321(1.05)^4$$ First compute $(1.05)^4 = 1.21550625$, then $B = 321 \times 1.21550625 = 390.17750625$

Step3: Calculate earned interest

Interest = $B - p$ <Expression> $390.17750625 - 321 = 69.17750625$

Step4: Round to nearest cent

Round $69.17750625$ to 2 decimal places

Answer:

$69.18