Question

Brian invests £1200 into a savings account. The bank gives 3% compound interest for the first 2 years and 5% thereafter. How much will Brian have after 6 years to the nearest pound?

Answer 1

So, the amount invested after 6 years is £1547

Explanation:

We can use formula

where

P is money invested

r1 is first interest rate

t1 is time for r1

r2 is second interest rate

t2 is time for r2

now, we can plug values

Explanation: