Question

Mark invests £2000 on an account that gives 4% compound interest.what will the value of his investment be after 6 years

Answer 1

Answer: £2530.64

Explanation:

The formula for calculating amount is given as :

A = P
`(1+r)^(n)`

Where :

A = amount

P = principal

r = rate%

n = number of years

Substituting the values of each into the equation we have

A = 2000
`(1+0.04)^(6)`

A = 2000 (
`1.04^(6)`)

A = 2530.638037

A ≈ £2530.64