To find the amount of money Liam will have after two years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount of money
P = the principal amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = time in years
Plugging in the given values:
P = $2,000
r = 3% = 0.03
n = 1 (compounded annually)
t = 2
A = 2000(1 + 0.03/1)^(1*2)
A = 2000(1.03)^2
A ≈ 2000(1.0609)
A ≈ $2,121.80
Therefore, Liam will have approximately $2,121.80 after two years.
The correct answer is D. $2,121.80.
Liam puts $2,000 in the bank with a 3% annual interest rate compounded annually. If Liam does not touch his money, how much money will he have after two years?
A $2,000.06
B $2,060.00
C $2,120.00
D $2,121.80
3 answers
are you sure?
Apologies for the mistake. Let me recalculate the answer.
Using the same formula:
A = P(1 + r/n)^(nt)
P = $2,000
r = 3% = 0.03
n = 1 (compounded annually)
t = 2
A = 2000(1 + 0.03/1)^(1*2)
A = 2000(1.03)^2
A ≈ 2000(1.0609)
A ≈ $2,121.80
Therefore, Liam will have approximately $2,121.80 after two years.
The correct answer is D. $2,121.80.
Using the same formula:
A = P(1 + r/n)^(nt)
P = $2,000
r = 3% = 0.03
n = 1 (compounded annually)
t = 2
A = 2000(1 + 0.03/1)^(1*2)
A = 2000(1.03)^2
A ≈ 2000(1.0609)
A ≈ $2,121.80
Therefore, Liam will have approximately $2,121.80 after two years.
The correct answer is D. $2,121.80.