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Brian invests £8500 into his bank account.
He receives 5.7% per year compound interest.
How much will Brian have after 6 years?
Give your answer to the nearest penny where appropriate.
CH please help me and give explanation and step by step and answer.

1 Answer

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Answer:o calculate the compound interest, we can use the formula:

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

where:

A = the final amount

P = the principal amount (initial investment)

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 = £8500, r = 5.7% = 0.057, n = 1 (since the interest is compounded annually), and t = 6.

So, plugging in the values:

A = £8500(1 + 0.057/1)^(1*6)

A = £8500(1.057)^6

A = £11260.23

Therefore, Brian will have £11260.23 in his bank account after 6 years with compound interest. Rounded to the nearest penny, the answer is £11,260.23.

Explanation:

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