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
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
