Question

£2,000 is invested for 3 years at a rate of 1.5% per annum compound interest work out the amount of interest at the end of 3 years​

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\pounds 2000\\ r=rate\to 1.5\%\to (1.5)/(100)\dotfill &0.015\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{per annum, thus once} \end{array}\dotfill &1\\ t=years\dotfill &3 \end{cases}`

`A=2000\left(1+(0.015)/(1)\right)^(1\cdot 3)\implies A\approx 2091.36~\hfill \underset{earned~interest}{\stackrel{2091~~ - ~~2091.36}{\approx 91.36}}`