Answer:
$14.12 (after 3 years) and $24.62 (after 5 years)
Step-by-step explanation:
Use the compound amount formula (assuming annual compounding):
A = P(1 + r)^t
Here A = $100(1 + 0.045)^3 (after 3 years)
= $100(1.045)^3 = $114.12.
The interest earned (alone) would be $14.12.
After 5 years:
Here A = $100(1 + 0.045)^5 (after 5 years)
= $100(1.045)^5 = $124.62
The interest earned (alone) would be $24.62.
