nick has $3,572 in an account that earns 1% interest compounded annually. to the nearest cent, how much…

nick has $3,572 in an account that earns 1% 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.

nick has $3,572 in an account that earns 1% 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

$p = 3572$, $r=0.01$, $t = 4$

Step2: Calculate the balance $B$

$B=p(1 + r)^t=3572\times(1 + 0.01)^4$ First, calculate $(1 + 0.01)^4=1.01^4=1.01\times1.01\times1.01\times1.01 = 1.04060401$. Then, $B = 3572\times1.04060401=3717.03752372$.

Step3: Calculate the interest

Interest $=B - p$. Interest $=3717.03752372-3572=145.03752372\approx145.04$.

Answer:

$145.04$