#### Answer

$(1+r)^2$

#### Work Step by Step

balance after one year: $P*(1+r)$
balance after three years: $P*(1+r)^3$
$P*(1+r)^3: P*(1+r)$
$(1+r)^3: (1+r)$
$(1+r)^2$

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Published by
Prentice Hall

ISBN 10:
0133500403

ISBN 13:
978-0-13350-040-0

$(1+r)^2$

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