Question

Macy Chapman - Answers to lea

1 invest £4600 in a bank account
paying
2.1%
compound interest. How much do I have in the account
after 5 years?

Answer 1

£5083

Explanation:

First, converting R percent to r a decimal

r = R/100 = 2.1%/100 = 0.021 per year,

then, solving our equation

I = 4600 × 0.021 × 5 = 483

I = £ 483.00

The simple interest accumulated

on a principal of £ 4,600.00

at a rate of 2.1% per year

for 5 years is £ 483.00.