Answer:
$23.07
Step-by-step explanation:
Present Value(PV) = $300
Interest rate(r) = 2.5 % or 0.025
Year(d) = 3 years
Find Future Value first.
This is the formula:
FV = PV(1 +r)[tex]^{d}[/tex]
Put the values to it.
FV = 300(1 + 0.025)[tex]^{3}[/tex]
FV = 300(1.025[tex])^{3}[/tex]
FV = 300(1.076890625)
FV = 323.0671875 or $323.07
The future value is $323.07. Now subtract it to the present value to get the interest.
323.07 - 300 = $23.07
The interest is $23.07
