AnnoyingSoulidn
Answered

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If £2000 is placed into a bank account that pays 3% compound interest per year
how much will be in the account after 2 years?

Sagot :

Enikaidn
Original value = £2000 = 100%
Interest is 3%, so new percentage value is 100% + 3% = 103%
Change to decimal 103/100 = 1.03 (this is your multiplier)
For 2 years 1.03^2 So £2000 x 1.03^2 = £2121,8
Final answer= £2121,7
Hi1315idn

Answer:

£ 2121.8

Step-by-step explanation:

The formula to find the compound interest is :

[tex]A=P(1+\frac{R}{100} )^n[/tex]

Here,

A = Amount ⇒ ?

P ⇒ Principal ⇒ £2000

R ⇒ Interest rate ⇒ 3%

n ⇒ Time  ⇒ 2 years

Let us find now.

[tex]A=P(1+\frac{R}{100} )^n[/tex]

[tex]A=2000(1+\frac{3}{100} )^2[/tex]

[tex]A=2000(1+0.03 )^2[/tex]

[tex]A=2000(1.03 )^2[/tex]

[tex]A=2000*1.0609[/tex]

[tex]A=2121.8[/tex]

Therefore, there will be £ 2121.8 in the bank account after 2 years.

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