Question

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

Answer 1

2121.8

Explanation:

2000(1+0.03/1)^2

A= P(1+ r/n) ^nt

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

I don't remember what I learned. So, this might be wrong because I googled the formula :)