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OpenStudy (anonymous):
Jonah deposited $500 in a savings account, which pays 2.5 percent interest. If he keeps it in the account for 3 and a half years, how much interest will he earn?
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OpenStudy (anonymous):
Is it compounding interest and annual interest?
OpenStudy (anonymous):
Year 0 to 1: 1.025 * 500 = 512.5 Year 1 to 2: 1.025 * 512.5 = 525.3125 Year 2 to 3: 1.025 * 525.31 = 538.4453125 Year 3 to 3.5: 1.0125 * 538.44 = 545.17587890625 Then I rounded it to $545.18
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