Answer:
Step-by-step explanation:
The amount in the account at the end of 1 year is $3,480.
The amount in the account at the end of 2 years is $4,036.80.
The formula that can be used to determine the amount that would be in account after a period of time with annual compounding is:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
Amount in a year = $3000 x (1.16)^1 = $3,480
Amount in two years = $3000 x (1.16)^2 = $4,036.80
