Final answer:
To find out how much money is in the account after 3 months, we can use the formula for compound interest.
Step-by-step explanation:
To find out how much money is in the account after 3 months, we can use the formula for compound interest. The formula is: A = P(1 + r/n)^(n*t), where A is the final amount, P is the principal (initial amount), r is the annual interest rate (in decimal form), n is the number of times interest is compounded per year, and t is the number of years. In this case, the principal is $500, the interest rate is 2.5% (or 0.025), the number of times interest is compounded per month is 1, and the number of years is 3 months divided by 12. Plugging these values into the formula, we get: A = 500(1 + 0.025/1)^(1*(3/12)). Evaluating this expression, we find that the amount in the account after 3 months is approximately $505.22.