Question

Colin invests £1500 into a savings account. The bank gives 4% compound interest for the first 3 years and 5% thereafter. How much will Colin have after 4 years to the nearest pound?

Answer 1

1500(1+0.04)^3 = 1687.30

1687.30(1+0.05) = 1771.67 to the nearest pound: 1772