henryh17 henryh17
  • 07-10-2020
  • Mathematics
contestada

£2000 is placed into a bank that pays 3% compound interest per year, how much will it be after 2 years?

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Jasminbell74
Jasminbell74 Jasminbell74
  • 07-10-2020
120 is your answer hope this helps
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1AnnaMoore
1AnnaMoore 1AnnaMoore
  • 07-10-2020

Answer:

2,121.80

Step-by-step explanation:

Compounded annually:  Account Balance = Principal x (1 + interest rate (decimal))^number of years.  

With the given information this is:  2000 (1.03)^2 = 2,121.80.  

So you will earn 121.80 in interest after 2 years on your original 2000 deposit.

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