Answer:
£1,049
Explanation:
The computation of the amount after 5 years is shown below:
Here we have to determined the future value
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= £950 × (1 + 0.02)^5
= £950 × 1.02^5
= £950 × 1.1040808032
= £1,049