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. $3,378.18

B. $6,591.00

C. $3,182.70

D. $3,278.18

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

anonymous · Answer

(3000)(1.03)(1.03)(1.03) = (3000)(1.03)^3 = (3000)(1.092727)

anonymous · Answer

wich  one is it

anonymous · Answer

The "1.03" factors come into play because it is "1" plus "3%" because you have the principal plus the interest after each year.

To get the answer, all you have to do is do that last multiplication.  Don't worry, I checked, and the answer will be among the choices.

anonymous · Answer

is it D

anonymous · Answer

Yes!  Good job!

anonymous · Answer

Good luck to you in all of your studies and thx for the recognition! @Cookie_009