annoyingSoul
Answered

At Westonci.ca, we make it easy to get the answers you need from a community of informed and experienced contributors. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.


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?

Sagot :

enika
Original value = £2000 = 100%
Interest is 3%, so new percentage value is 100% + 3% = 103%
Change to decimal 103/100 = 1.03 (this is your multiplier)
For 2 years 1.03^2 So £2000 x 1.03^2 = £2121,8
Final answer= £2121,7
Hi1315

Answer:

£ 2121.8

Step-by-step explanation:

The formula to find the compound interest is :

[tex]A=P(1+\frac{R}{100} )^n[/tex]

Here,

A = Amount ⇒ ?

P ⇒ Principal ⇒ £2000

R ⇒ Interest rate ⇒ 3%

n ⇒ Time  ⇒ 2 years

Let us find now.

[tex]A=P(1+\frac{R}{100} )^n[/tex]

[tex]A=2000(1+\frac{3}{100} )^2[/tex]

[tex]A=2000(1+0.03 )^2[/tex]

[tex]A=2000(1.03 )^2[/tex]

[tex]A=2000*1.0609[/tex]

[tex]A=2121.8[/tex]

Therefore, there will be £ 2121.8 in the bank account after 2 years.

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.