nina has $6,140 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much…

nina has $6,140 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much interest will she 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.

nina has $6,140 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much interest will she 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

Answer:

$1001.55$

Explanation:

Step1: Identify values

$p = 6140$, $r=0.05$, $t = 3$

Step2: Calculate final amount $B$

$B=p(1 + r)^t=6140\times(1 + 0.05)^3=6140\times1.05^3=6140\times1.157625 = 7141.55$

Step3: Calculate interest

Interest $=B - p=7141.55-6140=1001.55$