Answer:
$188.67
Step-by-step explanation:
We use the formula [tex]P(1+\frac{r}{n} )^{(n)(t)}[/tex] to calculate the balance of Regina account at the end of the first year.
Where:
A is the future value of the investment, including interest
P is the principal amount
r is the annual interest rate
n is the number of times that interest is compounded per year
t is the number of years
[tex]7500(1+\frac{0.025}{2}) ^{(2)(1)}[/tex] ≈ $7688.67
Then, to calculate the interest earned, we subtract the principal amount from the future value.
7688.67 - 7500 = $188.67
So, the account earned $188.67 interest in the first year.
