Answer:
£4836.92
Explanation:
Compound interest can be calculated using the formula:
A = P (1 + r)^t
Where A = Amount that will be obtained after the period
P= Principal amount initially invested by Colin
r = interest rate per year
t = number of period the amount will be invested for in years.
Thus, according to the analysis of the parameters above; A= ?, P= £4300, r = 4% (0.04), t= 3 years
We input the values into the formula, we have
A = 4300 (1 + 0.04) ^ 3
A = 4300 (1.04)^3
A = 4300 × (1.04 × 1.04 × 1.04)
A = 4300 × 1.12486
A = 4836.9152
Therefore, approximately, the amount that will be obtained by Colin after 3 years is £4836.92.