Answer:
I (interest) = £ 2,080.17
Explanation:
Perrie invests £25000 for 3 years in a saving account. She gets 2.7% per annum compound interest. Calculate the total amount of interest perrie will get after 3 years.
To solve the above question, we would use the Periodic compound interest formula
A = P(1 + r) ^t
Where P = Principal = £25000
r = Interest rate = 2.7 % = 0.027
t = time in years = 3 years
Hence:
A = £25,000( 1 + 0.027)³
A = £27,080.17
A = P + I where
P (principal) = £ 25,000.00
I (interest) = £27,080.17 - £ 25,000.00
I (interest) = £ 2,080.17
The total amount of interest perrie will get after 3 years is £ 2,080.17