If £2000 is placed into a bank account that pays 3% intrest per year . how much will be in 2 years

Amount after 2 years is £ 2121.8

Solution:

Given that £2000 is placed into a bank account that pays 3% interest per year

To find: amount after 2 years

Formula for Amount compounded annually is as follows:

\mathrm{A}=P\left(1+\frac{r}{100}\right)^{n}

Where "p" is the principal sum

"r" is the rate of interest

"n" is the number of years

Here in this sum,

p = 2000

r = 3 %

n = 2

Substituting the values in above formula,

Thus amount after 2 years is £ 2121.8

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