Answer:
$7.57
Explanation:
The amount of compound interest is the difference between the amount at the end of the year and the principal amount.
The amount of end of the year can be determined using the formula
A= P x ( 1+ r) ^n
where A = amount,
P =principal amount : $300
r= interest rate 2.5% per year, which is equal to 2.5/4 per quarter=0.625% or 0.00625
n= time in years: one year has 4 quarters
A = $300( 1 + 0.00625)^4
A = $300(1.00625)^4
A= $300 x 1.0252353
A=$307.570
Amount of compound interest
=$307.57 -$300
=$7.57
