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?

Answer 1

3,745.93or answer C

Explanation:

It just is

Answer 2

end of third year = 1,200*(1.02)^3 = 1,273.45 plus
end of second year = 1,200*(1.02)^2 = 1,248.48 plus
end of first year = 1,200*(1.02) = 1,224.00

Total = 3,745.93