If £2000 is placed into a ban account that pays 3% compound interest per year how much will be in the account after 2 years

Question

asked Dec 24, 2022 20.0k views

1 Answer

Sge · Answer 1 · 2022-12-29T05:08:07+0000

Answer:£2121.8

Explanation:

Given

Principal money
£2000

rate of interest is
$R=3\%$

time period
$T=2\ yr$

The amount by compound interest is given by

A=P[1+(R)/(100)]^T

Putting values

$\Rightarrow A=2000[1+0.03]^2\\\Rightarrow A=2121.8$

So, after two years it will be £2121.8