9514 1404 393
Answer:
- interest: $353.38
- total: $4978.38
Step-by-step explanation:
The equation for calculating the balance in an account earning compound interest is ...
A = P(1 +r)^t
where r is the annual rate and t is the number of years.
For Sam's account, the balance after 2 years is ...
A = $4625(1 +0.0375)^2 = $4978.38
The interest is the amount in excess of the deposited amount:
$4978.38 -4525.00 = $353.38
Sam's interest was $353.38, giving him a total of $4978.38.
