Question

Brian invests £4700 into his bank account.

He receives 5.5% per year compound interest.
How much will Brian have after 3 years?

Answer 1

5,548.9861375

Explanation:

First year

4700/100×5.5=258.5

So his account will be 4700+285.5=4985.5

Second year

4985.5/100×5.5=274.2025

His account will be 4985.5+274.2025=5,259.7025

Third year

5,259.7025/100×5.5=289.2836375

The total in his account after three years equal to

289.2836375+5259.7025=5,548.9861375