Answer :
a) Interest = principal * rate * time
I = (800)(0.05)(3) = $120
b) $800 + $120 = $920 after the three years. $920 * (1 - 0.02) = $901.60.
I = (800)(0.05)(3) = $120
b) $800 + $120 = $920 after the three years. $920 * (1 - 0.02) = $901.60.