Question

Dan invests £15000 into his bank account.

He receives 2.5% per year simple interest.
How much will Dan have after 4 years ?

Answer 1

$16,557

Explanation:

The computation of the amount after four years is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= £15,000 × (1 + 2.5%)^4

= £15,000 × 1.025^4

= $16,557