Martha places $200 in a checking account that will earn 3% interest compounded annually. If she closes the account after two years and incurs a closing charge of $2.75, how much money will she have?

Question

anonymous · Answer

Do you know what formula to apply?

anonymous · Answer

so not good with ith %

anonymous · Answer

the compound interest formula!

stacey · Answer

Since it is only two years and compounded yearly, we can just calculate it without that formula.
Do you know how much money interest will be earned in the first year?