Question

You invest 5,000 in a bank for 2 years at a 3% interest rate.

Answer 1

Answer:

Explanation:
Let's say interest is I
Investment (deposit)is D=5000
Time T=2yrs
and rate R =3% thus
I=D×R/100×T
5000×3/100×2
I=300

Answer 2

If simple interest: $5,300

If compounding interest: $5,304.50

Explanation:

**As you haven't specified if the interest is simple or compounding, I have provided both**

Simple interest

`\sf Formula:A = P(1 + rt)`

where:

• A = final amount
• P = principal
• r = interest rate (in decimal form)
• t = time (in years)

Given:

• P = 5000
• r = 3% = 0.03
• t = 2

Substituting the given values into the formula and solving for A:

`\implies \sf A = 5000(1 + 0.03 \cdot 2)`

`\implies \sf A = 5000(1.06)`

`\implies \sf A = 5300`

Compound interest

`\sf Formula:A=P(1+(r)/(n))^(nt)`

where:

• A = final amount
• P = principal
• r = interest rate (in decimal form)
• n = number of times interest applied per time period
• t = number of time periods elapsed

Given:

• P = 5000
• r = 3% = 0.03
• n = 1
• t = 2

Substituting the given values into the formula and solving for A:

`\implies \sf A=5000(1+(0.03)/(1))^2`

`\implies \sf A=5000(1.03)^2`

`\implies \sf A=5304.5`