Question

Jane invested £4000 for 3 years with an interest rate of 1.5%. What was her investment worth at the end of this period?

Answer 1

$4184

Explanation:

`a = p{(1 + (r)/(100) )}^(n)`

a = amount

p = principal

r = rate interest

n = number of years

a = 4000[1+(1.5/100)]³

= 4000(1.046)

= $4184

(Correct me if i am wrong)

Answer 2

$4182.7

Step-by-step explanation:= 4000*(1.5%)*3

Year 1= 4000*(100%+1.5%)= 4060

Year 2= 4060*(100%+1.5%)= 4120.9

Year 3= 4120.9*(100%+1.5%)= 4182.7