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

Question

Vocaloid · Answer

A = P(1 + r)^t for annually compounded interest
where A is the balance after interest is applied, r is the interest rate as a decimal, P is the initial deposit, and t is the # of years