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

Answer:

Year 1:

2000 + (3% of 2000) = 2000 + (60) = 2060

Year 2:

2060 is the new total, so now we calculate 3% of 2060 and add this to our current total.

So 2060 + (3% of 2060) = 2060 + (61.80) = 2121.80

So after two years the total amount in the bank account will be £2121.80.

Hope it helps....

Borahae❤❤