Question

Dan invests £1200 into his bank account. He receives 5% per year compound interest. How much will dan have after5 years?

Answer 1

Dan will have $1,531.53 after 5 years.

Explanation:

To find the answer, you can use the following formula to calculate the future value:

F= P(1 + r)^t

F= Future value

P= Present value= 1200

r= rate of interest= 5%

t= time= 5

F=1200(1+0.05)^5

A=1200(1.05)^5

A=1531.53

According to this, the answer is that Dan will have $1,531.53 after 5 years.