Answer:
The amount after 2 years will be $1,946.88.
Explanation:
[tex]A=P(1+\frac{R}{n})^{nT}[/tex]
A = Amount after 'T' time period
P = Principal amount
R = Interest rate
n = Number of times interest applied per time period
We have:
P = $1,800
R =3%=0.034
n = 1
T = 2 years
[tex]A=\$1,800\times (1+\frac{0.04}{1})^{1\times 2}[/tex]
[tex]A=\$1,946.88[/tex]
The amount after 2 years will be $1,946.88.
