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Nora deposited 3030 $\$ in an account earning 10%10\% interest compounded annually. To the nearest cent, how much interest will she earn in 33 years? Use the formula B=p(1+r)tB = p(1 + r)^t, where BB is the balance (final amount), pp is the principal (starting amount), rr is the interest rate expressed as a decimal, and tt is the time in years. $\$____

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Q. Nora deposited 3030 $\$ in an account earning 10%10\% interest compounded annually. To the nearest cent, how much interest will she earn in 33 years? Use the formula B=p(1+r)tB = p(1 + r)^t, where BB is the balance (final amount), pp is the principal (starting amount), rr is the interest rate expressed as a decimal, and tt is the time in years. $\$____
  1. Identify values: Identify the principal amount pp, interest rate rr as a decimal, and time tt. p=$30,p = \$30, r=10% or 0.10,r = 10\% \text{ or } 0.10, t=3 years.t = 3 \text{ years}.
  2. Use compound interest formula: Use the compound interest formula B=p(1+r)tB = p(1 + r)^t to calculate the balance after 33 years.B=30(1+0.10)3B = 30(1 + 0.10)^3
  3. Calculate inside parentheses: Calculate the amount inside the parentheses first. 1+0.10=1.101 + 0.10 = 1.10
  4. Raise to power: Raise 1.101.10 to the power of 33.$1.103=1.331\$1.10^3 = 1.331\)
  5. Multiply principal amount: Multiply the principal amount by the result from step 44.\newlineB=30×1.331B = 30 \times 1.331\newlineB=39.93B = 39.93
  6. Subtract to find interest: Subtract the original principal from the balance to find the interest earned.\newlineInterest earned = BpB - p\newlineInterest earned = 39.933039.93 - 30\newlineInterest earned = 9.939.93

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