Answered

Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Kira has $500 in an account that earns 15% interest 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.

Kira Has 500 In An Account That Earns 15 Interest Compounded AnnuallyTo The Nearest Cent How Much Interest Will She Earn In 3 YearsUse The Formula Bp1rt Where B class=

Sagot :

Given: The formula

[tex]\begin{gathered} B=p(1+r)^t \\ p=500 \\ r=15\%=0.15 \\ t=3 \end{gathered}[/tex]

To Determine: The interest

Solution

Let us substitute the given into the formula

[tex]\begin{gathered} B=500(1+0.15)^3 \\ B=500(1.150^3 \\ B=760.4375 \\ B\approx760.44 \end{gathered}[/tex]

The interest can be calculated as

[tex]\begin{gathered} Interest=B-p \\ Interest=760.44-500 \\ Interest=260.44 \end{gathered}[/tex]

Hence, the interest is $260.44

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.