Question

Franky puts £1000 in a bank account for six years with 2.5% rate of interest how much will be in the account at the end of that time

Answer 1

£1159.69

Explanation:

Assuming that the rate of interest is compound interest, you perform the equation:

New amount = Original amount × InterestRate^Number of Years

New amount = 1000 × 1.025⁶

New amount = 1159.693418

= £1159.69 (to the nearest penny)