Final answer:
By calculating compound interest on Carrie's $100 deposit in a savings account with a 2% interest rate compounded annually for 2 years, the total amount in the account will be $104.04.
Step-by-step explanation:
The subject of the question is compound interest, which is a mathematics concept dealing with the amount of money earned or paid on an initial deposit or loan, including the interest that has been added previously.
After 2 years, the amount of money in Carrie's savings account, which earns 2% compounded annually, can be found using the formula for compound interest, which is A = P(1 + r/n)nt. In this case, P is the principal amount (initial deposit) of $100, r is the annual interest rate (0.02), n is the number of times the interest is compounded per year (1, since it's annually), and t is the number of years money is invested or borrowed for (2).
After the calculations, we find that A = $100(1 + 0.02/1)1*2 which results in A = $100(1.02)2 = $100 * 1.0404 = $104.04. So the correct answer is C) $106.04.