Question

1.£500 is deposited in a bank paying 2% compound interest per annum. What is the balance after 2 years?

2.£400 is deposited in a bank paying 1.75% compound interest per annum. What is the balance after 2 years?
3.£800 is deposited in a bank paying 7% compound interest per annum. What is the balance after 2 years?
4.£700 is deposited in a bank paying 4.75% compound interest per annum. What is the balance after 6 years?
5.£4600 is deposited in a bank paying 3.75% compound interest per annum. What is the balance after 5 years?
6.£6000 is deposited in a bank paying 13% compound interest per annum. What is the balance after 4 years?
7.£200 is deposited in a bank paying 0.75% compound interest per annum. What is the balance after 2 years?
8.£7100 is deposited in a bank paying 15.75% compound interest per annum. What is the balance after 13 years?
9.£6600 is deposited in a bank paying 16.75% compound interest per annum. What is the balance after 15 years?
10.£8600 is deposited in a bank paying 15% compound interest per annum. What is the balance after 17 years?

Answer 1

Formula for compound interest: A = P( 1 + r/n)^nt

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

^ = I used this symbol to present that a the number needs to go higher (see picture)

1. 500(1 + 2/100)^2 = 520.2

£520.20

2. 400(1 + 1.75/100)^2 = 414.12

£414.12