To determine the amount of interest you earn each year with the information provided, we can use the two points on the graph: (3, 21) and (8, 56).
The points represent:
- At year 3, the total amount (principal + interest) is $21.
- At year 8, the total amount (principal + interest) is $56.
First, we can calculate the interest earned over the 5-year period between those two points:
\[ \text{Interest between years 3 and 8} = \text{Total at year 8} - \text{Total at year 3} = 56 - 21 = 35 \]
Next, we can calculate the number of years between points 3 and 8:
\[ \text{Years} = 8 - 3 = 5 \]
Now we can find the annual interest by dividing the total interest earned by the number of years:
\[ \text{Annual Interest} = \frac{35}{5} = 7 \]
Therefore, the amount of interest you earn each year is $7.00.
So the correct response is:
$7.00