Question

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

Answer 1

Answer:

2121.8 pounds will be in the account after 2 years.

Step-by-step explanation:

Here's the required formula to find the Amount :

$\star{\small{\underline{\boxed{\sf{\purple{A = P\bigg(1 + \dfrac{R}{100}\bigg)^{T}}}}}}}$

• $\pink\star$ A = Amount
• $\pink\star$ P = Principle
• $\pink\star$ R = Rate
• $\pink\star$ T = Time

Substituting all the given values in the formula to find the Amount :

$\implies{\small{\sf{Amount = P \bigg(1 + \dfrac{R}{100} \bigg)^{T}}}}$

$\implies{\small{\sf{Amount = 2000 \bigg(1 + \dfrac{3}{100} \bigg)^{2}}}}$

${\implies{\small{\sf{Amount = 2000 \bigg( \dfrac{100 + 3}{100} \bigg)^{2}}}}}$

${\implies{\small{\sf{Amount = 2000 \bigg( \dfrac{103}{100} \bigg)^{2}}}}}$

${\implies{\small{\sf{Amount = 2000 \bigg( \dfrac{103}{100} \times \dfrac{103}{100}\bigg)}}}}$

${\implies{\small{\sf{Amount = 2000 \bigg( \dfrac{103 \times 103}{100 \times 100}\bigg)}}}}$

${\implies{\small{\sf{Amount = 2000 \bigg( \dfrac{10609}{10000}\bigg)}}}}$

${\implies{\small{\sf{Amount = 2000 \times \dfrac{10609}{10000}}}}}$

${\implies{\small{\sf{Amount = 2000 \times 1.0609}}}}$

${\implies{\small{\sf{\underline{\underline{\red{Amount = 2121.8}}}}}}}$

Hence, the amount is 2121.8 pounds.

$\rule{300}{2.5}$