Answer:
$289.82
Step-by-step explanation:
Lets use the compound interest formula to solve:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
Our first step is to change 3% into a decimal:
3% -> [tex]\frac{3}{100}[/tex] -> 0.03
Now, lets plug the values into the equation:
[tex]A=250(1+\frac{0.03}{1})^{1(5)}[/tex]
[tex]A=289.82[/tex]
The account balance after 5 years will be $289.82
