Two years ago David put $3,000 into an account paying 3 percent interest.How much does he have in the account today?
A) $3,180.00
B) $3,182.70
C) $3,183.62
D) None of the above are correct to the nearest cent.

Question

Quizplus · Accepted Answer

The interest earned in the first year is $3,000 x 0.03 = $90. The balance at the end of the first year is $3,000 + $90 = $3,090. The interest earned in the second year is $3,090 x 0.03 = $92.70. The balance at the end of the second year is $3,090 + $92.70 = $3,182.70.

Two Years Ago David Put $3,000 into an Account Paying