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

Answer:£2121.8

Explanation:

Given

Principal money
`P=`£2000

rate of interest is
`R=3\%`

time period
`T=2\ yr`

The amount by compound interest is given by

`A=P[1+(R)/(100)]^T`

Putting values

`\Rightarrow A=2000[1+0.03]^2\\\Rightarrow A=2121.8`

So, after two years it will be £2121.8