Question

Colin invests £4600 into his bank account.

He receives 4% per year compound interest.
How much will Colin have after 7 years?
Give your answer to the nearest penny where appropriate.

Answer 1

£6053.29 to the nearest penny.

Explanation:

Amount after 7 years = 4600(1 + 0.04)^7

= 4600 * 1.04^7

= £6053.286.

Answer 2

6,053.29

Explanation:

Use this formula:

A= p(1+r/n)^nt

A= Amount (?)

P= Principal (4600)

r - interest rate (4%)

n= number of times the interest is compounded per year (1)

t= time (7 years)