If $3,000.00 is deposited into an account paying 4% interest compounded annually (at the end of each year), how much money is in the account after 2 years? (Round to the nearest cent.)

A)

To calculate the amount of money in the account after 2 years with compound interest, we can use the formula:

A = P(1 + r/n)^(nt)

Where:
A = the amount of money in the account after the specified time period
P = the initial amount deposited into the account
r = the interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the number of years

In this case:
P = $3,000.00
r = 4% = 0.04 (since the interest rate is given as a percentage, we need to convert it to decimal form)
n = 1 (interest is compounded annually)
t = 2 years

Plug in the values into the formula:

A = $3,000.00(1 + 0.04/1)^(1*2)

A = $3,000.00(1 + 0.04)^2

A = $3,000.00(1.04)^2

A = $3,000.00(1.0816)

A = $3,244.80

Therefore, after 2 years, there will be $3,244.80 in the account.