Question

Sebastian leaves Rs 3000 in a bank for two years. It earns compound interest of 2% per year.

Calculate the total amount Sebastian has in the bank at the end of the two years.
​

Answer 1

Answer:

3121.2

Step-by-step explanation:

Formula: Total amount = Pricipal(Start)amount(1+$\frac{Rate of interest}{100}$)^Time (no.of years)

Substitute the values with the formula

3000(1+$\frac{2}{100}$)^2 = 3121.2

Answer 2

The total amount Sebastian receives after investing the given amount for a given time compounded annually is Rs. 3121.2.

Given :

Principal amount invested = Rs. 3000

Tenure of investment = 2 years

Compound interest rate = 2%

To Find :

The total compounded amount after 2 years

Solution :

For a Principle amount "P" invested at a compound interest rate of "r%" annually for a time period of "t" years, the formula for the total amount at the end of t years compounded annually is :

                             $A = P ( 1+r)^{t}$

Applying the same formula for a principal amount Rs. 3000 at a rate of 2% per year for a time period of 2 years compounded annually. The final amount is :

P = 3000

r = 2% = 0.02

t = 2

                   $A = 3000 * (1 + 0.02)^{2}$

                       $= 3000 ( 1.02)^{2}$

                       $= 3000 * 1.02 * 1.02$

                       $= 3121.2$

Hence, the final amount received after 2 years compounded annually is Rs. 3121.2.

To learn more about Compound Interest, visit

https://brainly.com/question/28020457

#SPJ3