Question

deposit it $2,000 in an account that pays 3% how much is your balance at the end of 8 years

Answer 1

Is the interest simple of compounded every year?

Answer 2

3%compound interest

Answer 3

So that means each year, your amount will increase by 3%, or, will be (1+0.03), that is, (1.03) times more.

Final Amount = Initial amount * (1.03)^t
= 2000 * (1.03)^8
= 2000 * 1.266
= $2533

Answer 4

Good work, Arora. A question you need to usually ask on these, is "is it simple interest, or compound interest, compounded how often (daily, monthly, pr annually?)"
Students often read over these details when they decide they need help.