Answer:
$26.91
Step-by-step explanation:
Assuming that the interest is compounded annually, we have the formula [tex]A=P(1+r)^{t}[/tex]
A is the total amount.
P is the starting or principal amount
r is the rate, usually as a percentage
t is the times compounded
So, from the problem, we see that:
P = $350
r = 2.5% or 0.025
t = 3 yrs
Substituting variables, we get:
[tex]A = (350)(1+0.025)^{3}[/tex]
[tex]A=376.91[/tex]
So, our total amount is around $376.91, but they are asking us to find the interest. We subtract the total amount from the starting amount:
$376.91 - $350 = $26.91
You should check my answer though in case I make mistakes.
