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helpfulAnswer:
At the end of four years, Melanie will have $2,824.78Step-by-step explanation:
To calculate the amount Melanie will have at the end of four years with annual compounding interest, we can use the formula for compound interest:
A = P (1 + r/n)^(nt)
Where:
A is the total amount after the specified time
P is the principal investment
r is the annual interest rate (as a decimal)
n is the number of times the interest is compounded per year
t is the number of years
In this case, P = $2500, r = 0.03, n = 1 (since the interest is compounded annually), and t = 4.
Plugging these values into the formula, we get:
A = 2500 (1 + 0.03/1)^(1*4) A = 2500 (1.03)^4 A = $2,824.78
Therefore, at the end of four years, Melanie will have $2,824.78
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