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Answer:
Interest earned = $32.835
Step-by-step explanation:
Given the following data;
Principal = $275
Number of times = 0.5
Interest rate = 2.9% = 0.029
Time = 4 years
To find the interest earned, we would use the compound interest formula;
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
Substituting into the equation, we have;
A = $307.835
Interest earned = 307.835 - 275
Interest earned = $32.835