Question

Anne invested $1000 in an account with a 3% annual interest rate. She made no deposits or

withdrawals on the account for 2 years. If interest was compounded annually, which equation
represents the balance in the account after the 2 years?

Answer 1

for this problem you find 3 percent of $1000 to calculate the first year of interest which is 30 and then add it to your balance to get $1030 then you find 3 percent of that which is 30.9 and add it to your balance to get a total of $1060.9