Question

*Please Urgent*
If £2000 is placed in a bank account that pays 3% compound per year, how much will be in the account after 2 years?

Answer 1

Answer:

Step-by-step explanation:

Calculating annual compound interest

Mathematically challenged? Don’t worry, just head right on over to our savings calculator page to crunch the numbers. But if you’re determined to put your maths skills to the test here’s how you calculate compound interest:

1. Add 1 to your interest rate (expressed as a decimal)

2. This value is put to the power of the amount of years you want to leave your savings for

3. Multiply the result by the principal, or current balance of your account

4. You’ll have the new balance of your account

Here’s an example: If you put $10,000 away in a savings account to earn 3% p.a. for 2 years, the calculations to work out your compound interest might look like this:

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