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

There would be $2,120

Explanation:

First figure out what 3% of 2000 is which is 60. Multiply the 60 by 2 to get 120 then add 120 to 2000

Answer 2

The amount after 2 years in the bank will be $3,380.

Explanation:

`A=P(1+(R)/(n))^(nt)`

A = Amount after t time period

P = Principal amount

R = Interest rate

n = Number of times interest applied per time period

We have:

P = $2000

R =3%=0.03

n = 1

t = 2 years

`A=\$2000* (1+(0.03)/(1))^(1* 2)`

`A=\$3,380`

The amount after 2 years in the bank will be $3,380.