What annual interest rate must Kody Berry earn to have $35,500 increase to $38,500 in 3 years?

Answer:the interest rate is 2.81%

Step-by-step explanation:

Initial amount that would be in Kody Berry's account is $35,500

Total amount that would be in Kody Berry's account after 3 years is $38,500

This means that the interest would be

38,500 - 35,500 = $3000

The formula for simple interest is expressed as

I = PRT/100

Where

P represents the principal

R represents interest rate

T represents time

From information given,

P = 35500

T = 3 years

I = 3000

Therefore

3000 = (35500 * R * 3) / 100

3000 = 1065R

R = 3000/1065 = 2.81%