Answer:
$2,756
Explanation:
To find the balance after 3 years with 2.5% annual interest compounded monthly, we need to use the formula:
A = P (1 + r/n)^(nt)
Where:
P = the principal amount (the initial deposit)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
Plugging in the values, we get:
A = 2500 (1 + 0.025/12)^(12*3)
A = 2500 (1.0020833)^36
A = $2,756.08