Glenn invested $18,000 at 5% interest compounded annually.

How much interest will Glenn earn in 3 years?

A.$20,837.25

B.$2340.23

C.$2837.25

D.$19,826.24

18000 dollars invested with 5% interest.

=> 18 000 dollars * 0.05 = 900 dollars for annual interest rate.

Now, how much interest will he be earning in 3 years?

=> first year = 18 900 dollars *.05 = 945 dollars for the 2nd year

=> 2nd year = 18 900 dollars + 945 = 19 845 dollars

19845 *.05 = 992.25

=> 3rd years = 19845 + 992.25 = 20837.25 total amount he will get back.

For interest = 900 + 945 + 992.25 = $2837.25