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Leviafan [203]
3 years ago
14

Ethan opens up a new savings account. The account has a 3.5% compound interest per annum. Ethan invests £2,000 into the account

for 2 years. How much money did Ethan have in the account after 2 years?
Mathematics
1 answer:
Margarita [4]3 years ago
3 0

\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 3.5\%\to \frac{3.5}{100}\dotfill &0.035\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{per annum, thus once} \end{array}\dotfill &1\\ t=years\dotfill &2 \end{cases} \\\\\\ A=2000\left(1+\frac{0.035}{1}\right)^{1\cdot 2}\implies A=2000(1.035)^2\implies A=2142.45

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