Step-by-step explanation:
1st year:
(1200 x 3.5 x 1) ÷ 100 = $42
2nd year:
(1242 x 3.5 x 1) ÷ 100= $43.47
3rd year:
(1285.47 x 3.5 x 1) ÷ 100= $44.99≈ $45
4th year:
(1330.47 x 3.5 x 1) ÷ 100= $46.56
Compound interest:
$(42 + 43.47 + 45 + 46.56)
=$ 177.03
