To find how much money there will be in the account after 2.5 years, given the principal, interest rate, and compounding frequency, we use the formula for compound interest:

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

Where:

• $A$ is the amount of money in the account after $t$ years.
• $P$ is the principal (initial amount).
• $r$ is the annual interest rate (in decimal form).
• $n$ is the number of times the interest is compounded per year.
• $t$ is the number of years.

In this problem:

• $P = 1500$
• $r = 2.3\% = 0.023$
• $n = 365$ (since the interest is compounded daily)
• $t = 2.5$ years

Now, let's substitute these values into the formula and calculate the amount $A$.The amount of money in the account after 2.5 years will be approximately $1588.78, rounded to the nearest cent.

Do you want further details or have any questions?

Here are 5 related questions to explore:

1. How does the compounding frequency affect the final amount?
2. What if the interest was compounded monthly instead of daily?
3. How would the result change if the interest rate increased to 3%?
4. Can you compare simple interest and compound interest for this scenario?
5. What happens if the deposit time is extended to 5 years?

Tip: Compounding more frequently generally results in higher final amounts due to the interest earning interest more often.