A business lady deposited 200000 in a bank acount that earns 8% com pound interest compound annually how much money will be the inner account in 2years
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: A business lady deposited 200,000 in a bank account that earns 8% compound interest per year. If the interest compounds annually, how much money will be in the account in 2 years?
Identify the given values and the compound interest formula.
The principal amount () is 200,000.
The annual interest rate () is 8%, which is 0.08 as a decimal.
The interest is compounded annually, so the number of times interest is compounded per year () is 1.
The time () is 2 years.The compound interest formula is:
where is the amount after years.
Substitute the values into the formula.
Simplify the expression inside the parentheses and the exponent.
Calculate the value of .
Multiply the principal by the calculated factor to find the final amount.
The amount of money in the account after 2 years will be:
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