Answer:
Jed will have approximately $265.48 after three years.
Step by step explanation:
To calculate how much money Jed will have in one year, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount (the total money he'll have after one year)
P is the principal amount (the initial amount of $250)
r is the annual interest rate (2.75% or 0.0275 as a decimal)
n is the number of times interest is compounded per year (assuming it is compounded annually, n would be 1)
t is the number of years (in this case, t is 1)
Plugging in the values into the formula, we have:
A = 250(1 + 0.0275/1)^(1*1)
A = 250(1.0275)^1
A ≈ 256.88
Therefore, Jed will have approximately $256.88 after one year.
To calculate how much money he will have in 3 years, we can use the same formula with t = 3:
A = 250(1 + 0.0275/1)^(1*3)
A = 250(1.0275)^3
A ≈ 265.48
Therefore, Jed will have approximately $265.48 after three years.