Question

213 Marks

19/32 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?

Answer 1

2121.8

Explanation:

The principal is 2000

Rate is 3%

Time is 2 years

Therefore the amount that will be present in the account after 2 years can be calculated as follows

= 2000 × (1+0.03)^2

= 2000 × 1.03^2

= 2000 × 1.0609

= 2121.8