Final answer:
After depositing $350 into a savings account with a 2.5% annual interest rate and making no withdrawals for 3 years, the balance would be approximately $377.17, calculated using the compound interest formula.
Step-by-step explanation:
If you deposit $350 into a savings account that pays 2.5% interest annually, and you make no withdrawals, you can calculate the total amount in the account after 3 years using the compound interest formula:
A = P(1 + r/n)(nt),
where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for in years.
In this case, since the interest is compounded annually, n equals 1. Now let's plug in the numbers:
A = 350(1 + 0.025/1)(1*3),
A = 350(1 + 0.025)3,
A = 350(1.025)3,
A = 350 * 1.077625,
A = $377.16875.
After 3 years, without making any withdrawals, the amount in the savings account would be approximately $377.17.