Question

Correct answers only please!

To the nearest cent, how much interest will she earn in 2 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 1

10.50 is the interest

Explanation:

B = p(1 + r)^t

P = 50

r = .10

t = 2

B = 50(1 + .1)^2

= 50(1.1)^2

= 50(1.21)

= 60.5

But we want to know the interest and this is the balance

60.5- 50 = 10.5