Question 1 of 4
A bank representative studies compound interest so she can better serve customers. She analyses what happens when $2,000 earns interest several different ways at a
rate of 2% for 3 years.
(25 points)
1: Find the interest if it is computed using simple interest.
2: Find the interest if it is compounded annually.
3: Find the interest if it is compounded daily.
4: Find the interest if it is compounded continuously.
A. $122.42
B. $123.67
C. $120.00
D. $123.67