Question

. Toby invested £4500 for 2 years in a savings account. He was paid 4% per annum COMPOUND

interest. How much did Toby have in his savings account after 2 years?

Answer 1

P(1+r/100)^n - P

4500(1+4/100)^{2}-4500 =367.2

Explanation:

Answer 2

£4867.2

Explanation:

Given data

P= £4500

T=2 years

R= 4%

The compound interest expression

A=P(1+r)^t

substitute

A= 4500(1+0.04)^2

A=4500(1.04)^2

A=4500*1.0816

A=£4867.2

Hence the balance is £4867.2