Question

2000 is placed into a bank account that pays 3% compound interest per year

Answer 1

The compound interest on 2000 is 60.

Explanation:

Given,

Principal (P) = 2000

Rate of interest (r) = 3%

Time (T) = 1 years

To find the interest calculated compound in 1 year.

Formula

Amount = P
`(1+(r)/(100) )^(T)`

Putting the given values we get,

Amount = 2000
`(1+(3)/(100) )^(1)`

= 2060

So,

The interest = 2060-2000 = 60