Question

Colin invests £3300 into his bank account. He receives 3% per year compound interest. How much will Colin have after 4 years? Give your answer to the nearest penny where appropriate

Answer 1

Below

Explanation:

3% = .03 in decimal 4 (yearly) periods

The effective interest and deposit amount after 3 years compounded yearly will be

3300 (1 +.03)^4 = £ 3714.18