Subjects finance

Option B Earnings B7056E

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1. **State the problem:** Calculate how much option B will earn using the compound interest formula. 2. **Formula used:** The compound interest formula is $$A = P(1 + i)^n$$ where $A$ is the amount after interest, $P$ is the principal, $i$ is the interest rate per period, and $n$ is the number of periods. 3. **Substitute the values for option B:** $$A = 9000(1 + 0.041)^5$$ 4. **Calculate inside the parentheses:** $$A = 9000(1.041)^5$$ 5. **Evaluate the power:** $$1.041^5 \approx 1.2214$$ 6. **Multiply by the principal:** $$A = 9000 \times 1.2214 = 10992.6$$ 7. **Calculate the interest earned:** $$\text{Interest} = A - P = 10992.6 - 9000 = 2992.6$$ **Final answer:** Option B will earn approximately $2992.6$ in interest.