Question

Brian invests £6600 into his bank

account.
He receives 0.6% per year compound
interest.
How much will Brian have after 6 years?
Give your answer to the nearest penny
where appropriate.
O
→ £ 1

Answer 1

See Below

Explanation:

The equation for this scenario would be ( compounded annually)

6600 ( 1 + .006)^6 = £ 6841.19

Answer 2

Brian will have £6841.19 after 6 years.

Explanation:

The compound interest formula is:

`A = P( 1 +(r)/(100) )^(n)` ,

where A is the final amount, P is the initial (principal) amount invested (£6600), r is the interest rate (0.6%) and n is the number of years the money is kept for (6 years).

Using the formula:

`A = 6600(1 + (0.6)/(100) )^(6)\\\\A = 6841.19`