Answer: $35.6125
Step-by-step explanation:
3.5% = 0.035
Let's find the deposit amount with interest at the end of the first year:
500 + 500 · 0.035 = 517.5
Let's find the amount of the deposit with interest at the end of the second year:
517.5 + 517.5 · 0.035 = 535.6125
Find the total interest earned over two years:
535.6125 - 500 = 35.6125
