Question

Ray invests £9000 in a savings account.

The account pays 2.4% compound interest per year.
Work out the value of his investment after 4 years.
Give your answer to the nearest penny.

Answer 1

`A=9895.60`

Explanation:

`A = P(1 + (r)/(n))^(nt)`

`A = 9000(1 + (24)/(1000))^(4)`

`A=9895.60`

Answer 2

Answer: £9895.60

Explanation:

Assuming, interest is compounded annually.

A = p(1+r/n)^nt

A= 9000(1+0.024)^4

A = 9000(1.09951)

A = 9895.60