The total interest earned is 40.75 and the final balance is 65.75
Solution:
Given, principle amount P = 25
Interest rate [tex]r = 3.25\% = \frac{3.25}{100} = 0.0325[/tex]
Times compounded per year n = 12
Time in years t = 30
[tex]Amount \ A=P\left(1+\frac{r}{n}\right)^{n t}[/tex]
On substituting the values we get
[tex]A = 25 [ 1+ \frac{0.0325}{12}]^{12\times30}= 25 [2.63]= 65.75[/tex]
Interest I = A - P [since, A = P+I]
[tex]\Rightarrow 65.75 - 25= 40.75[/tex]
