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

malik deposited $2,439 in an account earning 7% interest compounded annually.\nto the nearest cent, how much interest will he earn in 3 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$

malik deposited $2,439 in an account earning 7% interest compounded annually.\nto the nearest cent, how much interest will he earn in 3 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$

Answer

Explanation:

Step1: Identify given values

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

Step2: Calculate final balance $B$

$B = 2439(1 + 0.07)^3 = 2439(1.07)^3$ First compute $(1.07)^3 = 1.07\times1.07\times1.07 = 1.225043$ Then $B = 2439\times1.225043 \approx 2987.88$

Step3: Calculate earned interest

$\text{Interest} = B - p$ $\text{Interest} = 2987.88 - 2439 = 548.88$

Answer:

$$548.88$