Samantha deposited $300 in a savings account. The account earns 3.5% interest compounded annually. She makes no more deposits and withdraws no money from the account. How much interest will Samantha’s account have earned after 2 years?

She will have earned $321.37 after 2 years.

Step-by-step explanation:

Principal: $300

Interest Rate: 3.5%

Time: 2 years

Compounded Annually means that the principal will earn a certain amount this year and a greater amount next year, since it takes the new balance and add the interest rate to it.

Year 1: 3.5% of 300= 10.5

300 + 10.5 = 310.5

Year 1 balance: $310.5

Year 2: 3.5% of 310.5=10.87

310.5 + 10.87= 321.37

Year 2 balance: $321.31

only 10/60 isn't equivalent

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