Question

$400 invested with compound interest at a rate of 3% per year for 2 years. Formula: M = P(1+ i)n

Answer 1

$424.36

Step-by-step explanation:

The applicable formula =M= P ( 1+ r)^2

Where M is the amount after two years

P = principal amount: $400

r = interest rate: 3% or 0.03

n =number of period :2

M= $400 x ( 1+ 0.03) ^ 2

M=$400 x 1.0609

M= $424.36