Respuesta :
Given:
Bryce has $3,106 in a savings account that earns 4% interest, compounded annually.
so, the initial investment = P = 3,106
The interest rate = r = 4% = 0.04
compounded annually ⇒ n = 1
We will find the interest earned in 5 years, ⇒ t = 5
We will use the following formula to find the interest (I):
[tex]I=P(1+\frac{r}{n})^{nt}-P[/tex]substitute with the given data:
[tex]\begin{gathered} I=3106\cdot(1+\frac{0.04}{1})^{1\cdot5}-3106 \\ I=3106\cdot1.04^5-3106=3106\cdot(1.04^5-1)\approx672.9239 \end{gathered}[/tex]Rounding to the nearest cent
So, the answer will be the interest = $672.92
