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

Chemistry

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Answer

233,280

Step-by-step solution

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This is the same question as before. Here is the solution again:

: 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?

  1. Identify the given values and the compound interest formula.

    The principal amount (PP) is 200,000.
    The annual interest rate (rr) is 8%, which is 0.08 as a decimal.
    The interest is compounded annually, so the number of times interest is compounded per year (nn) is 1.
    The time (tt) is 2 years.

    The compound interest formula is:

    A=P(1+rn)ntA = P \left(1 + \frac{r}{n}\right)^{nt}

    where AA is the amount after tt years.

  2. Substitute the values into the formula.

    A=200,000(1+0.081)1×2A = 200,000 \left(1 + \frac{0.08}{1}\right)^{1 \times 2}
  3. Simplify the expression inside the parentheses and the exponent.

    A=200,000(1+0.08)2A = 200,000 (1 + 0.08)^{2} A=200,000(1.08)2A = 200,000 (1.08)^{2}
  4. Calculate the value of (1.08)2(1.08)^2.

    (1.08)2=1.08×1.08=1.1664(1.08)^{2} = 1.08 \times 1.08 = 1.1664
  5. Multiply the principal by the calculated factor to find the final amount.

    A=200,000×1.1664A = 200,000 \times 1.1664 A=233,280A = 233,280

    The amount of money in the account after 2 years will be:

    233,280233,280
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