Barry's savings account has a balance of $2874. After 9 years, what will the amount of interest be at 5% compounded annually? a. $1589.52 c. $1575.52 b. $1584.52 d. $1437.00

Answer:Option B. [tex]\$1,584.52[/tex]Step-by-step explanation:we know that    The compound interest formula is equal to  [tex]A=P(1+\frac{r}{n})^{nt}[/tex]  where  A is the Final Investment Value  P is the Principal amount of money to be invested  r is the rate of interest  in decimal t is Number of Time Periods  n is the number of times interest is compounded per year in this problem we have  [tex]t=9\ years\\ P=\$2,874\\ r=0.05\\n=1[/tex]  substitute in the formula above  [tex]A=\$2,874(1+\frac{0.05}{1})^{1*9}=\$4,458.52[/tex]  Find the interest[tex]I=A-P=\$4,458.52-\$2,874=\$1,584.52[/tex]