Hey there!
To start, this is a compound interest problem, meaning you will have to use this formula:
A=P(1+[tex] \frac{r}{n} [/tex])^nt
P represents the principal amount, r represents the rate as a decimal, n represents the amount of times compounded, and t represents the number of years compounded.
Now, plug in your known values:
P=300 (your initial amount)
r=0.02 (your rate of 2%)
n=1 (compounded annually, meaning once every year)
t=4 (the number of years you need to find)
A=300(1+0.02/1)^(1*4)
Now, simplify:
A=300(1+0.02)^4
=300(1.02)^4
=300(1.08243216)
=324.729648
Finally, round to the nearest cent and you get $324.73 as your final answer.
