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A bank offers a saving account with an introductory interest rate of 7% for the first year, and a follow-on rate of 5%, compounded annually. If £500 is invested in the account for 3 years, how much interest
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A bank offers a saving account with an introductory interest rate of 7% for the first year,

and a follow-on rate of 5%, compounded annually.
If £500 is invested in the account for 3 years, how much interest will be earned?

User Kii
by
5.0k points

1 Answer

1 vote

Answer:

=£5898.38

Explanation:

5000×1.07×1.05^(2)

=£5898.38

User Geevee
by
4.6k points
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