Question

Homework Progress

79/99 Marks
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?
Optional working
3
78%
Answer

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\pounds 2000\\ r=rate\to 3\%\to (3)/(100)\dotfill &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{per year, thus once} \end{array}\dotfill &1\\ t=years\dotfill &2 \end{cases} \\\\\\ A = 2000\left(1+(0.03)/(1)\right)^(1\cdot 2)\implies A=2000(1.03)^2 \implies A = 2121.8`