To calculate the amount in the account after 2 years with an annual interest rate of 3%, you would use the formula for compound interest:
\[ A = P(1 + r)^t \]
where:
- \( A \) is the amount in the account after t years,
- \( P \) is the principal amount (the initial investment),
- \( r \) is the annual interest rate (as a decimal),
- \( t \) is the number of years the money is invested for.
For your case:
- \( P = 400 \)
- \( r = 0.03 \) (which is 3% as a decimal)
- \( t = 2 \)
Plugging these values into the formula gives:
\[ A = 400(1 + 0.03)^2 \]
So the correct answer is:
C) A = 400(1 + .03)^2