Answer:
d. $146.27
Explanation:
For computing the interest earned, first we have to calculate the future value which is shown below:
Future value = Present value × (1 + rate)^number of years
where,
Present value = $2,750
Rate = 5.25% ÷ 2 = 2.625%
Number of years = 1 year × 2 = 2 years
So, the future value
= $2,750 × (1 + 2.625%)^2
= $2,750 × 1.0531890625
= $2,896.27
Now the interest earned would be
= $2,896.27 - $2,750
= $146.27
