Given:
Cortez invests $2500 at a rate of 7.5%.
To find:
Her balance at the end of three years.
Solution:
Formula for amount:
[tex]A=P(1+\dfrac{r}{100})^t[/tex]
where, P is principal, r is rate of interest and t is time in years.
Putting P=2500, r=7.5 and t=3, we get
[tex]A=2500(1+\dfrac{7.5}{100})^3[/tex]
[tex]A=P=2500(1+0.075)^3[/tex]
[tex]A=2500(1.075)^3[/tex]
[tex]A=2500(1.242296875)[/tex]
[tex]A=3105.7421875[/tex]
[tex]A\approx 3105.74[/tex]
Therefore, her balance at the end of three years will be $3105.74.
Note: All options are incorrect.
