Question

George, Matthew and Isabelle invest money in a savings account, which pays compound interest of 3% p.A

Answer 1

The question is incomplete. The complete question is :

George, Matthew and Isabelle invest money in a savings account, which pays compound interest of 3% p.a.

a). George invested £ 4800. Work out the total value of his investment after 5 years.

Solution :

It is given that :

George invested amount of, P = £ 4800

Time of investment, t = 5 years

Rate of interest, r = 3 % p. a.

The total value will be :

`$A=P(1+(r)/(100))^t$`

`$A=4800(1+(3)/(100))^5$`

`$A=4800* (1.03)^5$`

`A = 4800 * 1.1592`

= 5564.16

Therefore the total value after 5 years = £ 5564.16