Math Problem Statement
Edgar has $7,000 in an account that earns 15% interest compounded annually. To the nearest cent, how much interest will he earn in 3 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. $
Solution
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Exponential Growth
Formulas
Compound Interest Formula: B = p(1 + r)^t
Theorems
Exponential Growth Theorem
Suitable Grade Level
Grades 9-12
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