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 2 years
To calculate the amount of money Liam will have after 2 years, we need to use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial amount), r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, and t is the number of years.
In this case, P = $2,000, r = 3% (or 0.03), n = 1 (interest compounded annually), and t = 2.
Plugging the values into the formula:
A = 2000(1 + 0.03/1)^(1*2)
A = 2000(1 + 0.03)^2
A = 2000(1.03)^2
A = 2000(1.0609)
A ≈ $2,121.80
Thus, Liam will have approximately $2,121.80 after 2 years if he does not touch his money.