Answer:
The final amount/ her balance after two years is $106.09
Step-by-step explanation:
We are going to assume that the balance compounds every year
applying the compound interest formula we have
[tex]A= P(1+r)^t[/tex]
where
A, final amount
P, Principal= $100
r, Rate= 3%= 0.03
T, time= 2years
substituting our values into the formula we have
[tex]A= 100(1+0.03)^2\\A=100(1.03)^2\\A=100*1.0609\\A=106.09\\[/tex]
The final amount/ her balance after two years is $106.09
