Question

Amir pits £3035 into a bank account. The account pays 4% compound interest each year. Work out how much money amir will have in the account after 6 years

Answer 1

`\£3840.2`

Explanation:

Let P denotes principal amount, T denotes time period and R denotes rate of interest.

Amount =
`P(1+(R)/(100))^T`

Amir pits £3035 into a bank account. The account pays 4% compound interest each year.

Put
`P=\£3035,\,R=4\%,\,T=6`

Amount =
`3035(1+(4)/(100))^6=3035((104)/(100))^6=\£3840.2`

Therefore, Amir will have
`\£3840.2` in the account after 6 years.