Answer:
Balance = 269,897.15
Interest earned 44,879.15
Explanation:
The compound interest formula is
[tex]A=P(1+r)^t[/tex]where P is the principal amount, is the interest rate, and t is the time interval.
Now in our case, we have
P = $225,000
r = 6.25%/100
t = 3 years
therefore, the final amount is
[tex]A=225,000(1+\frac{6.25}{100})^3[/tex][tex]\boxed{A=\$269,879.15}[/tex]which is the balance earned in 3 years.
The interest earned is the final amount minus the initial amount
[tex]\begin{gathered} I=A-P \\ I=\$269,879.15-\$225,000 \end{gathered}[/tex][tex]\boxed{I=\$44,879.15}[/tex]which is the interest earned in 3 years.
