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

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

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Isabella 18 mins 2021-10-13T22:08:27+00:00 1 Answer 0

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    2021-10-13T22:10:02+00:00

    \bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$2000\\ r=rate\to 3\%\to \frac{3}{100}\dotfill &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{per year, thus once} \end{array}\dotfill &1\\ t=years\dotfill &2 \end{cases} \\\\\\ A=2000\left(1+\frac{0.03}{1}\right)^{1\cdot 2}\implies A=2000(1.03)^2\implies A=2121.8

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