Answer: Interest = $544.94
Explanation:
A = P(1 + r/n)nt
A = P + I
P (principal) = $3,475.00
I (interest) = $544.94
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 6/100
r = 0.06 rate per year,
Then solve the equation for A
A = P(1 + r/n)^nt
A = 3,475.00(1 + 0.06/1)^(1)^(2.5)
A = 3,475.00(1 + 0.06)^(2.5)
A = $4,019.94