Question

if £2000 is placed into a bank account the pays 3percent compound interest per year, how much will be in the account after 2 years

Answer 1

£2,120.00

Explanation:

First, converting R percent to r a decimal

r = R/100 = 3%/100 = 0.03 per year.

Solving our equation:

A = 2000(1 + (0.03 × 2)) = 2120

A = $2,120.00

The total amount accrued, principal plus interest, from simple interest on a principal of £2,000.00 at a rate of 3% per year for 2 years is £2,120.00.