Step-by-step explanation:
First we find the interest at the end of the first year.
Principal = #600
Rate = 3%
Time = 1 year
Interest = [tex]\frac{600 * 3 * 1}{100}[/tex]
= #18
Amount = #618 at the end of the first year
Now at the end of the second year.
Principal now = #618
Rate now = 2%
Time = 1 year
Interest = [tex]\frac{618 * 2 * 1}{100}[/tex]
= #12.36
Amount = #630.36 at the end of the second year
