Answer: $548.00
Step-by-step explanation: In order to find out how much interest Malik will earn in 3 years, we need to first calculate the amount of interest earned each year. We can do this by multiplying the initial amount he deposited by the interest rate, which is 7%. So, the amount of interest earned each year is $2,439 * 7% = $169.73.
Since the interest is compounded annually, this means that the amount of interest earned in the first year is added to the initial deposit to form the new balance. This new balance will then earn interest in the second year, and so on.
Therefore, the amount of interest earned in the second year is 7% of the new balance, which is $2,439 + $169.73 = $2,608.73. So, the interest earned in the second year is $2,608.73 * 7% = $182.61.
In the third year, the interest is again compounded, so the new balance is $2,608.73 + $182.61 = $2,791.34. The interest earned in the third year is 7% of this new balance, which is $2,791.34 * 7% = $196.48.
In total, Malik will earn $169.73 + $182.61 + $196.48 = $548.82 in interest over 3 years. To the nearest cent, this is $548.00.