A principal of $2000 is placed in a savings account at 3% per annum compounded annually. How much is in the account after one year, two years and three years?

Step-by-step explanation:

After one year

A=p (1+r/n) ^nt

=2000 (1+0.03/12) ^12*1

=2000 (1+0.0025) ^12

=2000 (1.0025) ^12

=2000 (1.0304)

=$2060.8

After two-years

A=p (1+r/n) ^nt

=2060.8 (1+0.03/12) ^12*2

=2060.8 (1+0.0025) ^24

=2060.8 (1.0025) ^24

=2060.8 (1.0618)

=$2188.157

After three years

A=p (1+r/n) ^nt

=2188.157 (1+0.03/12) ^12*3

=2188.157 (1+0.0025) ^36

=2188.157 (1.0025) ^36

=2188.157 (1.0941)

=$2394.063