ANSWER
$3100
EXPLANATION
Sally deposits $2500 at 8% interest for 3 years.
We want to find the amount she can withdraw at the end of the period.
To know this, we have to first find the interest.
Simple Interest is given as:
[tex]\begin{gathered} SI\text{ = }\frac{P\cdot\text{ R }\cdot\text{ T}}{100} \\ \text{where P = principal = \$2500} \\ R\text{ = rate = 8\%} \\ T\text{ = 3 years} \end{gathered}[/tex]Therefore:
[tex]\begin{gathered} SI\text{ = }\frac{2500\cdot\text{ 8 }\cdot\text{ 3}}{100} \\ SI\text{ = }\frac{60000}{100} \\ SI\text{ = \$600} \end{gathered}[/tex]Therefore, after 3 years the interest will be $600.
The amount she can withdraw after this period is therefore the sum of the principal and the interest:
$2500 + $600 = $3100
She can withdraw $3100 at the end of the period.
