Question

Tom invested £2500 for 3 years into his savings account.

The back paid him 3% per year compound interest.
How much did Tom have in his bank account at the end of the three years?

Answer 1

Fv=2,500×1.03^(3)
=2,731.81

Answer 2

the frist years interest would be £75 , so after 1 year it'd be £2,575 , after 2 years the interest would be £77.25 giving a total of £2,652.25 and after the third final ear , the interest would be £79.57 , resulting in Tom having £2,731.82 at the end of the 3 years