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

Explanation:

A=P(1+r/n)^t*n

A=2000(1+.03)^2

A=2000(1.03)^2

A=2000(1.0609)

A=2121.80

Since it’s per year I didn’t divide 1 by .03 or multiply it by 2 since it would end in the same equation. If you were to do semiannually or any other payment period, the process would have been nessassary.

Hope this helps!