Question

If £2000 was put into a bank acount that pays 3% compound intrest per year, how much will be in the account after 2 years

Answer 1

After 2 years, there will be £ 2,121.80 in the account.

Explanation:

Since £ 2000 was put into a bank account that pays 3% compound intrest per year, to determine how much will be in the account after 2 years the following calculation must be performed:

2000 x (1 + 0.03 / 1) ^ 1x2 = X

2000 x 1.03 ^ 2 = X

2,121.8 = X

Therefore, after 2 years, there will be £ 2,121.80 in the account.