Question

Marshall has $700 in an account that earns 13% interest compounded annually.

To the nearest cent, how much interest will he earn in 1 year?

Answer 1

Marshall will earn $91 in interest in one year.

Explanation:

The interest earned by Marshall in one year can be calculated using the formula:

I = P * r

where I is the interest earned, P is the principal (initial amount invested), and r is the interest rate expressed as a decimal.

In this case, the principal is $700 and the interest rate is 13% or 0.13 as a decimal. So we have:

I = $700 * 0.13 = $91

Therefore, Marshall will earn $91 in interest in one year.