Question

A savings account pays 2% interest compounded annually. If $1,200 is deposited initially and again at the first of each year, how much money will be in the account three years after the initial deposit?
$1,248.48
$2,472.48
$3,672.48
$3,745.93

Answer 1

You just have to find 2% of it which you can do by dividing by 100 then multiplying by 2 then add that to the current amount. You would have to do this once every year so 3 times