Evelyn deposited 90$ in an account earning 10% interest compounded annually. To the nearest cent, how much interest will she earn in 1 year? 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. $____
Q. Evelyn deposited 90$ in an account earning 10% interest compounded annually. To the nearest cent, how much interest will she earn in 1 year? 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. $____
Identify Formula and Values: Step 1: Identify the formula and values to use.We use the formula B=p(1+r)t. Here, p=$90, r=10% or 0.10, and t=1 year.
Substitute Values: Step 2: Substitute the values into the formula.Calculate B=90(1+0.10)1.
Perform Calculation: Step 3: Perform the calculation for the expression inside the parentheses. 1+0.10=1.10.
Calculate Final Balance: Step 4: Calculate the final balance after 1 year.B=90×1.10=$(99).
Determine Interest Earned: Step 5: Determine the interest earned by subtracting the principal from the final balance.Interest earned = $99 - $90 = $9.