Joni put $200 in an interest-bearing account with an annual compound interest rate of 5%. Joni determined that after 3 years, she will have a total balance of $230. Her work is shown below. Step 1: P = 200, r = 5, t = 3 Step 2: I = 200 ∙ 0.05 ∙ 3 Step 3: I = 30 Step 4: 30 + 200 = 230 Is Joni correct? Explain. Joni is not correct, because $230 is just the interest she will earn; she will have $430 total. Joni is not correct; $230 will be her balance after 1 year. After 3 years, she will have $290. Joni is not correct because she used the simple interest rate formula, not the compound interest rate formula. She will have $231.53. Joni is correct. She correctly applied the I = P · r · t formula, and will have $230.