Answer:
c. 100 x (1+0.06) x (1+0.06)
Step-by-step explanation:
c. 100 x (1+0.06) x (1+0.06)
Interest compounding takes the form of P*(1+r)^n,
where P is the principal, r is the interest rate, and n is the number of interest rate periods. If 6% interest is paid on $100 in principal once a year, the value at the end of the first year is $100*(1 + 0.060)^1. The second year would be:
$100*(1 + 0.060)^2 or $100*(1 + 0.060)*(1 + 0.060)