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£4100 is deposited into a bank paying 13.55% interest per annum , how much money will be in the bank after4 years

User Loolooii
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1 Answer

3 votes

Answer:

To solve this problem, we can use the formula for compound interest:

A = P(1 + r/n)^(n*t)

Where:

A = the amount of money in the account after the specified time period

P = the initial principal amount (the amount deposited)

r = the annual interest rate (as a decimal)

n = the number of times the interest is compounded per year

t = the time period in years

In this case:

P = £4100

r = 13.55% = 0.1355

n = 1 (interest is compounded once per year)

t = 4 years

Plugging these values into the formula, we get:

A = £4100(1 + 0.1355/1)^(1*4)

A = £4100(1.1355)^4

A = £4100(1.6398)

A = £6717.58

Therefore, the amount of money in the account after 4 years will be £6717.58.

User Tesia
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