A credit union's Rate-Climber GIC pays rates of 2%, 2.5%, and 3% compounded semiannually in successive years

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Question:

A credit union's Rate-Climber GIC pays rates of 2%, 2.5%, and 3% compounded semiannually in successive years of a three-year term.How much interest will be earned in the second year, if $12,400 is invested in this GIC? (Do not round intermediate calculations and round your final answer to 2 decimal places.)