Question

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

Answer 1

£2121.80

Explanation:

Year 1 -> 2000 + (3% of 2000) = 2000 + (60) = 2060

Year 2 -> 2060 + (3% of 2060) = 2060 + (61.80) = 2121.80