We all know, savings account have "Compound Interest"
So, Here, On $100 deposit, amount of Interest = $12
So, for $50, it would be: $6
Then, for $300, it is: $36
b) If you deposit $200, then balance after 1 year,
A = P(1 + r)^t
A = 200(1 + 0.03)^1
A = 200(1.03)
A = $206
Now, Balance with $150
A = 150 (1 + 0.03)^1
A = 150(1.03)
A = 154.5
Difference = 206 - 154.5 = $51.5
In short, Your Answer would be: $51.5
Hope this helps!
