Elliot deposited $⁢300 into a savings account with a 3% interest that compounds monthly. Which formula will correctly show Elliot how much the investment will grow after 2 years?

Use the compound interest formula A = P(1 + r/n)^(nt), where P = 300, r = 0.03, n = 12 monthly compounding periods per year, and t = 2 years. Substituting gives A = 300 × (1 + 0.03/12)^(12 × 2), which is choice B. The interest rate must be written as 0.03, and the monthly rate is 0.03 divided by 12.

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