Final answer:
The simple interest for $345 at a 4% annual rate over 3 years is $41.40. The total amount after adding the interest to the principal will be $386.40.
Step-by-step explanation:
To find the simple interest and the total amount for a principal of $345 at a 4% annual interest rate over 3 years, we use the formula for simple interest: Interest = Principal × Rate × Time and the formula for total amount: Total amount = Principal + Interest.
First, we calculate the interest:
Interest = $345 × 0.04 × 3 = $41.40
Therefore, the interest accrued over three years is $41.40.
Next, we calculate the total amount to the nearest cent:
Total amount = Principal + Interest
Total amount = $345 + $41.40 = $386.40
So, the total amount after three years will be $386.40.