Answer:
The amount is $472.93 and the interest is $22.93.
Explanation:
STEP 1: To find amount we use formula:
A=P(1+rn)n⋅t
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
In this example we have
P=$450 , r=2.5% , n=2 and t=2 years
After plugging the given information we have
AAAA=450(1+0.0252)2⋅2=450⋅1.01254=450⋅1.050945=472.93
STEP 2: To find interest we use formula A=P+I, since A=472.93 and P = 450 we have:
A472.93II=P+I=450+I=472.93−450=22.93