josie has $4,000 in an account that earns 5% interest compounded annually. to the nearest cent, how much…

josie has $4,000 in an account that earns 5% interest compounded annually. to the nearest cent, how much interest will she earn in 1 year? 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.

josie has $4,000 in an account that earns 5% interest compounded annually. to the nearest cent, how much interest will she earn in 1 year? 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

$p = 4000$, $r=0.05$, $t = 1$

Step2: Calculate final amount

$B=p(1 + r)^t=4000\times(1 + 0.05)^1=4000\times1.05 = 4200$

Step3: Calculate interest

Interest $=B - p=4200-4000 = 200$

Answer:

$200.00$