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This problem requires us to calculate the **ending balance** using the compound interest formula, assuming the interest is compounded annually.

The formula for compound interest is:

\[
A = P \left( 1 + \frac{r}{n} \right)^{nt}
\]

Where:
- $ A $ is the ending balance (what we need to find).
- $ P = 700 $ is the principal (initial investment).
- $ r = 6.5\% = 0.065 $ is the annual interest rate.
- $ t = 3 $ years is the time.
- $ n = 1 $ (since we assume annual compounding unless specified otherwise).

Let me calculate the ending balance $ A $.The ending balance after 3 years, with a principal of $700 and an annual interest rate of 6.5%, is approximately **$845.56**.

Do you need further details or have any questions?

Here are five related questions:
1. How does the ending balance change with quarterly compounding instead of annual?
2. What would be the balance after 5 years with the same interest rate and principal?
3. How much interest was earned after 3 years in this case?
4. How does the interest change if the rate is 8% instead of 6.5%?
5. What is the formula for continuous compounding?

**Tip:** When calculating compound interest, increasing the compounding frequency generally results in a higher ending balance.

Find the ending balance: Principal: $700, Interest Rate: 6.5%, Time: 3 years.

Learn how to calculate compound interest with a principal of $700, an annual interest rate of 6.5%, and a time period of 3 years. This problem covers the compound interest formula and is suitable for students in Grades 9-12.

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