Answer:
£2,121.80
Step-by-step explanation:
To solve this problem, we can use the compound interest formula:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, change 3% into a decimal:
3% -> [tex]\frac{3}{100}[/tex] -> 0.03
Now, plug in the values:
[tex]A=2,000(1+\frac{0.03}{1})^{1(2)}[/tex]
[tex]A=2,121.80[/tex]
Your answer is £2,121.80
