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

User Teaqu
by
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1 Answer

13 votes
13 votes

Answer:

2121.8 pounds will be in the account after 2 years.

Step-by-step Step-by-step explanation:

Here's the required formula to find the Amount :


\star{\small{\underline{\boxed{\sf{\purple{A = P\bigg(1 + (R)/(100)\bigg)^(T)}}}}}}


  • \pink\star A = Amount

  • \pink\star P = Principle

  • \pink\star R = Rate

  • \pink\star T = Time

Substituting all the given values in the formula to find the Amount :


\implies{\small{\sf{Amount = P \bigg(1 + (R)/(100) \bigg)^(T)}}}


\implies{\small{\sf{Amount = 2000 \bigg(1 + (3)/(100) \bigg)^(2)}}}


{\implies{\small{\sf{Amount = 2000 \bigg( (100 + 3)/(100) \bigg)^(2)}}}}


{\implies{\small{\sf{Amount = 2000 \bigg( (103)/(100) \bigg)^(2)}}}}


{\implies{\small{\sf{Amount = 2000 \bigg( (103)/(100) * (103)/(100)\bigg)}}}}


{\implies{\small{\sf{Amount = 2000 \bigg( (103 * 103)/(100 * 100)\bigg)}}}}


{\implies{\small{\sf{Amount = 2000 \bigg( (10609)/(10000)\bigg)}}}}


{\implies{\small{\sf{Amount = 2000 * (10609)/(10000)}}}}


{\implies{\small{\sf{Amount = 2000 * 1.0609}}}}


{\implies{\small{\sf{\underline{\underline{\red{Amount = 2121.8}}}}}}}

Hence, the amount is 2121.8 pounds.


\rule{300}{2.5}

User Mhouglum
by
2.9k points