Final answer:
To find the amount in an account after 3 years with an initial investment of $2,000 at 3% interest compounded annually, use the formula for compound interest. The amount in the account after 3 years will be $2,188.33.
Step-by-step explanation:
To find the amount in an account after 3 years with an initial investment of $2,000 at 3% interest compounded annually, we can use the formula for compound interest. The formula is: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial investment), r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
In this case, P = $2,000, r = 0.03, n = 1 (compounded annually), and t = 3. Plugging in these values into the formula, we get: A = 2000(1 + 0.03/1)^(1*3). Evaluating this expression gives us: A = $2,188.33. Therefore, the amount in the account after 3 years will be $2,188.33.