Answer and Explanation:
The computation of the interest in the following years are shown below:
a. For the first year
= Deposits made in the bank × (1 + interest rate) - deposits made in bank
= $1,800 × (1 + 3%) - $1,800
= $54
b. For the second year
= Deposits made in the bank × (1 + interest rate)^ - deposits made in bank × (1 + interest rate)
= $1,800 × (1 + 3%)^ - $1,800 × (1 + 3%)
= $55.62
c. For the tenth year
= Deposits made in the bank × (1 + interest rate)^n - deposits made in bank × (1 + interest rate)^n
= $1,800 × (1 + 3%)^10 - $1800 × (1 + 3%)^9
= $70.46