Joel deposits $1000 in his savings account at the bank, where interest is compounded annually at...
Joel deposits $1000 in his savings account at the bank, where interest is compounded annually at 1.75%. What is the amount of interest earned in the THIRD year ALONE?
A. 17.50
B. 18.11
C. 17.80
Homework Answers
For easier understanding, I am pasting a table which shows the year wise principal and interest:
| Year | Principal | Interest | Outstanding amount |
| 1 | 1,000 | 17.5 | 1,017.5 |
| 2 | 1,017.5 | 17.81 | 1,035.3 |
| 3 | 1035.31 | 18.12 | 1,053.4 |
Therefore, in the third year, the interest is $ 18.12
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