First of all, the interest is compounded which means that the new principle is the principle from the year before added to the interest from the year before.
So, for example, at the end of the first year she will have accumulated 60 dollars in interest. That 60 dollars is added to the 2000 and the second year will give you 2060 dollars as your principle. That means that anything using 0.03 is incorrect if not with the 1.
A and C are both incorrect.
You don't want to be adding even if you are using 1.03. So that means
For these equations, the number inside the parenthesis has to be greater than 1 in order to increase. You also have to multiply what is inside the parenthesis with what is outside.
