Question

A savings account pays 2% interest compounded annually. If $1,200 is deposited initially and again at the first of each year, how much money will be in the account three years after the initial deposit?
$1,248.48
$2,472.48
$3,672.48
$3,745.93

Answer 1

Answer:

it would be 3,672.48

Step-by-step explanation:

because 2 percent of 1,200 is 24 so 24 times three is 72

1,200 times three years is 3,600 + 72 = 3,672 and some change