malik deposited $2,439 in an account earning 7% interest compounded annually. to the nearest cent, how much…

malik deposited $2,439 in an account earning 7% interest compounded annually. to the nearest cent, how much interest will he 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.

malik deposited $2,439 in an account earning 7% interest compounded annually. to the nearest cent, how much interest will he 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

$p = 2439$, $r=0.07$, $t = 3$

Step2: Calculate the balance $B$

$B=p(1 + r)^t=2439\times(1 + 0.07)^3=2439\times(1.07)^3$ $(1.07)^3=1.07\times1.07\times1.07 = 1.225043$ $B=2439\times1.225043\approx2987.88$

Step3: Calculate the interest

Interest $=B - p=2987.88- 2439=548.88$

Answer:

$548.88$