Question

Please help me on this question​

Answer 1

V = £21,012.50

Explanation:

Compound interest formula

`\sf A=P(1+(r)/(n))^(nt)`

where:

• A = final amount
• P = principal
• r = interest rate (in decimal form)
• n = number of times interest applied per time period
• t = number of times periods elapsed

Given:

• A = V
• P = £20,000
• r = 2.5% = 0.025
• n = 1
• t = 2

Substituting given values into the formula:

`\sf \implies V=20000(1+(0.025)/(1))^((1 * 2))`

`\sf \implies V=21012.5`