Question

Harry invests £6000 in the savings account. The account pays 3.4% compound interests per year. Work out the value of his investment after 3 years. Give your answer to the nearest penny.

Answer 1

£6633.04

Explanation:

The formula for compound interest is p(1+r/100)^t

Substitute p with principal, t with time and r with rate

6000(1+3.4/100)^3

6000(103.4/100)^3

6000 x 103.4/100 x 103.4/100 x 103.4/100

Solve to get £6633.04