415,105 views
42 votes
42 votes
Sarah invests £2000 for 2 years in a saving account. She earns 3% per annum in compound interest.

How much did Sarah have in her saving account after 2 years?

£

Use the formula:

A=P(1+r100)n

Where;

A = the amount of money accumulated after n years, including interest

P = the principal sum (the initial amount borrowed or invested)

r = the rate of interest (percentage)

n = the number of years the amount is borrowed or invested

User Tecla
by
2.2k points

1 Answer

8 votes
8 votes

Answer:

£2120.27

Explanation:

A = P (1 + r100)

A = 2000 (1+ 0.03/365)^365(2)

A = 2000 ( 1.00008)^730

A = 2000 (1.060)

A = £2120.27

User Candra
by
3.1k points
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