tony has $5,665 in an account that earns 6% interest compounded annually. to the nearest cent, how much…

tony has $5,665 in an account that earns 6% 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.

tony has $5,665 in an account that earns 6% 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

$p = 5665$, $r=0.06$, $t = 3$

Step2: Calculate the balance $B$

$B=p(1 + r)^{t}=5665\times(1 + 0.06)^{3}=5665\times(1.06)^{3}=5665\times1.191016 = 6748.00664$

Step3: Calculate the interest

Interest $=B - p=6748.00664-5665=1083.00664\approx1083.01$

Answer:

$1083.01$