Question

if £5000 Is placed into a bank account that pays 2% compound interest per year, how much will be in the account after two years

Answer 1

Answer:

£5200

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 2%/100 = 0.02 per year,

then, solving our equation

I = 5000 × 0.02 × 2 = 200

I = £ 200.00

The simple interest accumulated

on a principal of £ 5,000.00

at a rate of 2% per year

for 2 years is £ 200.00.