Question 1040113

Layla has $30 in a savings account. The interest rate is 5%, compounded annually.

To the nearest cent, how much interest will she earn in 2 years?
<pre>If she takes out the $1.50 interest after the 1st year, then it'll be $1.50 for the 1st year and $1.50 for the 2nd year for a total of $3.00.
If she leaves the interest earned after the 1st year in the account, then the deposit and interest will COMPOUND, and the amount in the account
after 2 years would be $33.075, which makes the interest $3.075 &#8776; $3.08