Final answer:
To find the total amount with compounded interest, we can use the formula: A = P(1 + r/n)^(nt), where A is the total amount, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years. Using this formula with the given values, the total amount is approximately $2666.84.
Step-by-step explanation:
To find the total amount with compounded interest, we can use the formula: A = P(1 + r/n)^(nt) where A is the total amount, P is the principal amount, r is the annual interest rate (as a decimal), n is the number of times the interest is compounded per year, and t is the number of years.
In this case, the principal amount (P) is $2500, the annual interest rate (r) is 6.75% or 0.0675, the number of times the interest is compounded per year (n) is 2, and the number of years (t) is 1.
Plugging these values into the formula, we get: A = $2500(1 + 0.0675/2)^(2*1)
Simplifying the calculation, A is approximately equal to $2666.84 when rounded to the nearest cent.