Answer: $3,278.18
Step-by-step explanation:
This is a matter of Compound interest as you are to find how much your friend would have after 3 years assuming the money was being compounded every year.
The formula for compound interest is,
FV = PV ( 1 + r ) ^ n
FV is the value in future after the compounding
PV is the Present Value
r is interest rate
n is the no. of periods of compounding.
FV = 3,000 ( 1 + 0.03) ^ 3
FV = 3278.181
FV = $3,278.18
The amount available at the time of his graduation ceremony will be $3,278.18