Question

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

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$8815\\ r=rate\to 10\%\to (10)/(100)\dotfill &0.10\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &1 \end{cases} \\\\\\ A=8815\left(1+(0.10)/(1)\right)^(1\cdot 1) \implies A=8815(1+0.10)^1\implies A=9696.5`