lamar deposited $9,651 in an account earning 10% interest compounded annually. to the nearest cent, how much…

lamar deposited $9,651 in an account earning 10% 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.

lamar deposited $9,651 in an account earning 10% 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

Explanation:

Step1: Identify values

$p = 9651$, $r=0.1$, $t = 4$

Step2: Calculate final balance

$B=p(1 + r)^t=9651\times(1 + 0.1)^4=9651\times1.1^4=9651\times1.4641$ $B = 14131.6291$

Step3: Calculate interest

Interest $=B - p=14131.6291-9651 = 4480.6291\approx4480.63$

Answer:

$4480.63$