Question

Henry places £6000 in an account which pays 4.6% compound interest each year

Calculate the amount in his amount after 2 years

Answer 1

£ 6,564.70

Explanation:

Henry places £6000 in an account which pays 4.6% compound interest each year. Calculate the amount in his amount after 2 years

Compound Interest formula =

A = P(1 + r/n)^nt

A = Final Amounrt

P = Principal = £6,000

r = Interest rate = 4.6%

t = Time in years = 2 years

n = Compounding frequency = Yearly = 1

First, convert R percent to r a decimal

r = R/100

r = 4.6%/100

r = 0.046 per year,

Then, solve our equation for A

A = P(1 + r/n)^nt

A = 6,000.00(1 + 0.046/1)^(1×2)

A = £ 6,564.70

The amount in his account after 2 years = £ 6,564.70