How much is in the account after one year

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Q1. A principal of $2000 is placed in a savings account at 3% per annum compounded annually. How much is in the account after one year, two years and three years?

Q2. What would $1000 become in a saving account at 3% per year for 3 years when the interest is not compounded (simple interest)? What would the same amount become after 3 years with the same rate but compounded annually?

Q3. $1200 is placed in an account at 4% compounded annually for 2 years. It is then withdrawn at the end of the two years and placed in another bank at the rate of 5% compounded annually for 4 years. What is the balance in the second account after the 4 years?

Q4. An amount of $1,500 is invested for 5 years at the rates of 2% for the first two years, 5% for the third year and 6% for the fourth and fifth years all compounded continuously. How will i calculate the total amount at the end of the 5 years?

Reference no: EM132884500

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