First, set up an equation to model the problem. I will use the simple interest formula: I = (P)(r)(t); where P = principle amount, r = interest rate, and t = time.
First, substitute the known values into the formula:
P = $250
r = 0.3% = 0.003
t = 2
I = (250)(0.003)(2)
Now, all we have to do is simplify to find the amount of interest that will be added to Sydney's account after two years.
I = (0.75)(2)
I = 1.5
After two years, $1.50 will be added to Sydney's account. To find the total amount of money she will have after that time, just add the interest to her initial deposit:
250 + 1.5 = 251.50
So, your final answer is...
After two years, Sydney will have $251.50 in her account.
Hope this helps!
