rafi has $6,629 in an account that earns 10% interest compounded annually. to the nearest cent, how much…

Answer:

$3145.57$

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years. Here, $P=$6629$, $r = 0.1$ (since $10%=0.1$), and $t = 4$.

Step2: Calculate the amount $A$

$A=6629\times(1 + 0.1)^4=6629\times1.1^4$. First, calculate $1.1^4=1.1\times1.1\times1.1\times1.1 = 1.4641$. Then, $A = 6629\times1.4641=$9774.57$.

Step3: Calculate the interest

The interest $I$ is the difference between the final amount $A$ and the principal $P$. So, $I=A - P$. $I=9774.57-6629=$3145.57$.