Question

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

Account Balance = Principal x (1 + interest rate (decimal)) number of years, compounded annually.

Explanation:

This is based on the information provided: 2121.80 (1.03)2 = 2000 So, on your initial deposit of 2000, you can collect 121.80 in interest after two years.