Question

If £2000 is placed into a ban account that pays 3% compound interest per year how much will be in the account after 2 years​

Answer 1

There is 2121.80 in the account after 2 years.

Explanation:

Use the formula A = P(1 + r)^t where P = initial amount, A = amount after t years and r = the rate (as a decimal).

So, for this problem:

Amount after 2 years = 2000(1 + 0.03)^2

= £2121.80