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22 January, 21:16

How much would Keith have in his account after three years if he started with $200 and earns 2 percent interest, compounding annually?

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  1. 22 January, 21:23
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    Compound interest means earning interest on the interest and principal balance from previous years!

    After 1 year, $200 x 1.02 = $204

    After 2 years, $204 x 1.02 = $208.08

    After 3 years, $208.08 x 1.02 = $212.24
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