Final answer:
To calculate the total interest earned over 10 years, use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years. Applying this formula, Kennedy will earn approximately $3,880.51 in interest over 10 years with a 2.9% interest rate compounded annually.
Step-by-step explanation:
To calculate the total interest earned, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount (initial deposit), r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
In this case, Kennedy won $3,000 and wants to know the total interest earned in 10 years with a 2.9% interest rate compounded annually. Plugging the values into the formula, we get: A = 3000(1 + 0.029/1)^(1*10) = 3000(1.029)^10 ≈ $3,880.51.
Therefore, Kennedy will earn approximately $3,880.51 in interest over 10 years.