In this case, we'll have to carry out several steps to find the solution.
Step 01:
Principal = $2000
rate = 1.75% = 0.0175
time = 3 years
Amount = ?
Step 02:
Compounded annually
A = P * (1 + r/n) ^ nt
n = 1
[tex]A\text{ = 2000 }\cdot(1+0.0175/1)^{1\cdot3}[/tex]A = 2000 * (1.0534)
A = 2106.85
The answer is:
Mark will have $2106.85 after 3 years.
