Answer:
£2121.80
Step-by-step explanation:
The initial amount she invested is £2000. She invested for 2 years and at a rate of 3% compound interest.
The final amount she has after 2 years is given as:
[tex]A = P(1 +r)^t[/tex]
where P = principal (amount initially invested) = £2000
r = rate = 3%
t = number of years = 2 years
Hence, the final amount after 2 years is:
[tex]A = 2000(1 + \frac{3}{100})^2\\ \\A = 2000(1 + 0.03)^2\\\\A = 2000(1.03)^2 = 2000*1.0609[/tex]
A = £2121.80
She will have £2121.80 in her savings account after 2 years.
After 2 years Sarah 'account will have £ 2121.80.
Given that Sarah invests £ 2000 for 2 years in a saving account, and she earns 3% per annum in compound interest, to determine how much did Sarah have in her saving account after 2 years, the following calculation must be performed:
Therefore, after 2 years Sarah 'account will have £ 2121.80.
Learn more about maths in https://brainly.com/question/8762186
