Question

Please help me solve this

Answer 1

Question:

If £2000 is placed in a bank account that pays 3% compound interest per year. How much will be in the account after 2 years?

Step By Step Solution:

• Principal= £2000
• Rate of interest=3%
• Time period (n)=2 yrs

According to the formula,

$\tt \: A = P(1 + \frac{r}{100} ) {}^{n} \\ \\ \tt \: A =2000(1 + \frac{3}{100} ) {}^{2} \\ \\ \tt \: A =2000(1 + 0.03) {}^{2} \\ \\ \tt \: A =2000(1.03) {}^{2} \\ \\ \tt \: A =2121.08$

Amount= 2121.08£

$\huge \bold{@ParkStanley}$