Question

Don put $3,000 in a savings account with an interest rate of 3% for three years. If the interest is compounded annually, how much money will he have at the end of the three years?

A. $3,278.18
B. $3,378.18
C. $6,591.00
D. $3,182.70

Answer 1

The answer is A
Explanation
So you would use the formula A=p(1+r/n)^(n)(t)
n=1
(since it’s annually and it’s compounded once a year)
P=3000 the principle
rate=0.03
time=3
(3000)(1+0.03/1)^(1)(3)= which would equal 3278.18

Answer 2

B

Explanation:

I do not know how to explain it but I know it is B