Answer:
$191.29
Step-by-step explanation:
Use the formula
[tex]A = P(1 + \dfrac{r}{100})^n[/tex]
where P is amount deposited, A the accrued amount, n number of years and r the interest rate in % compounded annually
The division by 100 is necessary to convert r% to a decimal for calculations
We have P = 850, r = 7% and n = 3
Plugging these in we get
[tex]A = 850\cdot (1 + (\dfrac{7}{100})^3\\\\A= 850\cdot(1 + 0.07)^3\\A = 850\cdot1.07^3\\\A = \$1,041.29[/tex]
Interest = A - P = 1041.29 - 850 = $191.29
