Answer:
Option (C) is correct.
Explanation:
Given that,
Amount invested today = $2,000
Interest paid annually(r) = 5%
Time period(n) = 3 years
[tex]Future\ value=Present\ value\times(1+r)^{n}[/tex]
[tex]Future\ value=2,000\times(1+0.05)^{3}[/tex]
[tex]Future\ value=2,000\times(1.05)^{3}[/tex]
= $2,315.25
Therefore,
Total amount earn:
= Future value - Present value
= $2,315.25 - $2,000
= $315.25
