Question

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

Answer 1

Year 1: 2,000 x 3% = 60 2,000 + 60 = 2,060 Year 2: 2,060 x 3% = 61.8 2,060 + 61.8 = 2,121.8 So, the answer is there will be £2,121 in the bank account after 2 years.