Asavings account pays 2% interest compounded annually. if $1,200 is deposited initially and again at the first of each year, how much money will be in the account three years after the initial deposit? a. $2,472.48 b. $3,672.48c) $3,745.93

The last deposit earns interest for 1 year, so its value is multiplied by 1.02. The next-to-last deposit earns interest for 2 years, so its value is multiplied by 1.02². The first deposit earns interest for 3 years, so its value is multiplied by 1.02³. Then the total amount in the account at the end of 3 years is
  $1200·(1.02 +1.02² +1.02³) = $3745.93

The appropriate choice is
  C) $3,745.93