Step 1

We start with the compound interest formula:
Where:   

1. A is the total amount of money (including interest) after n years ($3993)
2. P is the principal
3. r is the interest rate per year (10 ÷ 100 = 0.1)
4. n is the loan duration in year (3 years).

Step 2

With A=3993, r=0.1 and n=3, we can substitute these values into the compound interest formula as shown below: 

Step 3

Now we have, 1.331P = 3993. To find P, we need to remove 1.331. To do so, we divide both sides of the equation with 1.331. This is shown below:

Step 4

Finally, we have P = $3000. Clearly, the answer is B.

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