To the nearest cent, how much interest will she 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.
Simply plug in all known values to the equation. You know that p is 50, r is 0.10, and t is 2, for two years. After you plug in all those values, you can solve for this equation, and get 60.5 as your answer.
