Question

Laura invests £1290 in a bank account.

The account gathers compound interest at a rate of
0.5% per month.
How much money will be in the account after 8 months?
Give your answer in pounds to the nearest 1p.

Answer 1

Answer: £1342.5

Explanation:

y = a(1 + R)^n

y = 1290(1 + 0.005)^8

y ≈ 1342.51

∴ £1342.5