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Degger [83]
3 years ago
12

Ramona deposits $2,500 into a savings account that pays 4.5% interest compounded annually. If Ramona makes no deposits or withdr

awals, how much interest will her money earn after 3 years? Record your answer in the boxes. Then fill in the bubbles. Be sure to use the correct place value.
Mathematics
1 answer:
kicyunya [14]3 years ago
5 0

Answer: She will earn $352.92 as interest.

Step-by-step explanation:

Formula for compound interest= P((1+r)^t-1)

, where P= principal value, r = rate of interest(in decimal) , t= time

As per given , we have

P = $2,500

r =  4.5% = 0.045

t= 3 years

then, Compound interest = 2500((1+0.045)^3-1)=2500((1.045)^3-1)

=2500(1.141166125-1)=2500(0.141166125)\\\\\approx\ \$352.92

Hence, she will earn $352.92 as interest.

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