1. Problem: Calculate the amount in a savings account after 1, 2, and 3 years with a principal of 20,000 at 3% per annum compounded annually. 2. The formula for compound interest is $$A = P(1 + r)^t$$ where: - $A$ is the amount after $t$ years, - $P$ is the principal (20,000), - $r$ is the annual interest rate (3% = 0.03), - $t$ is the number of years. 3. After 1 year: $$A_1 = 20000(1 + 0.03)^1 = 20000 \times 1.03 = 20600$$ 4. After 2 years: $$A_2 = 20000(1.03)^2 = 20000 \times 1.0609 = 21218$$ 5. After 3 years: $$A_3 = 20000(1.03)^3 = 20000 \times 1.092727 = 21854.54$$ 6. Therefore, the account balance will be: - After 1 year: 20600 - After 2 years: 21218 - After 3 years: 21854.54