Verified Answer :

gawa

Compound interest means earning interest on the interest and principal balance from previous years!

After 1 year, $200 x 1.02 = $204

After 2 years, $204 x 1.02 = $208.08

After 3 years, $208.08 x 1.02 = $212.24

Answer:

The amount after 2 year will be $212.2416

Explanation:

We have given principle amount P = $200

Time period n = 3 years

Rate of interest r = 2 %

We have to find the amount after 2 years if the amount is compounded annually

We know that amount is given by

\(A=P(1+\frac{r}{100})^n\)

\(A=200(1+\frac{2}{100})^3\)

\(A=$212.2416\)

So the amount after 2 year will be $212.2416

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