Question

Question attached - Interest question

Answer 1

a= sue=£2300x(102.4/100)^3 = £2469.606195

bill=£1800x(103.4/100)^3=£1989.913147

b= bill =£1800x(103.4/100)^2=£1924.48

3rd year =£1924.48x(104/100)=£2001.4592

sue= £169.61p (2dp) more

bill=£201.46 (2dp)

Explanation:

Answer 2

a) Sue
2300(1+2.4%)^3
= 2469.606195

2469.606195-2300
=£169.6061952

Bill
1800(1+3.4%)^3
=1989.913147

1989.913147-1800
=189.9131472

b) Bill