Answer:
Step-by-step explanation:
Use compound interest formula
- A = P(1 + r)^(nt), where A- future amount, P - invested amount, r- interest rate, t- time, n- number of compounds per year
Given:
- P = $2975
- r = 4% = 0.04
- t = 2.5 years
- n = 1
Substitute the values and calculate:
- A = 2975(1 + 0.04)^2.5 = 3281.48
Correct choice is B
