Liam puts $2,000 in the bank with a 3% annual interest rate compounded annually. If Liam does not touch his money, how much money will he have after two years?
After the first year, Liam will have earned 3% of $2,000, which is $60. So, his account balance will be $2,060.
After the second year, he will earn 3% of $2,060, which is $61.80. So, his account balance will be $2,121.80.
Therefore, Liam will have $2,121.80 in his account after two years.