Answer :
[tex]\boxed{I=\$35.43}[/tex]
Explanation:
The simple interest formula is:
[tex]A=P(1+rt) \\ \\ \\ A: \ is \ the \ Final \ Investment \Value \\ \\ P: \ is \ the \ Principal \ amount \ of \ money \ to \ be \ invested \\ \\ r: \ is \ the \ rate \ of \ interest \\ \\ t: \ is \ \ Number \ of \ Time \ Periods[/tex]
First, converting r percent to r a decimal
[tex]r = 3.25\%=\frac{3.25}{100}=0.0325 \ per \ year[/tex]
Solving our equation:
[tex]A=545(1+0.0325\times 2) \\ \\ A=580.425 \\ \\ Rounded \ to \ the \ nearest \ cent: \\ \\ A=\$580.43[/tex]
So the interest earned if you invest $545 in a savings account that earns 3.25% for two years can be calculated as:
[tex]I:Interest \\ \\ \\ I=A-P \\ \\ I=580.43-545 \\ \\ \boxed{I=\$35.43}[/tex]
Learn more:
Simple interest: https://brainly.com/question/11911443
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