The given information is:
- The initial amount is $600
- The interest rate is 2% (compounded annually)
The given formula is:
[tex]B=p(1+r)^t[/tex]
Where B is the balance (final amount), p is the principal (starting amount), r is the interest rate as a decimal, and t is the time in years.
By replacing the known values we obtain the balance after 3 years:
[tex]\begin{gathered} B=600*(1+0.02)^3 \\ B=600(1.02)^3 \\ B=600*1.06 \\ B=636.72 \end{gathered}[/tex]
The answer is $636.72
