Question

Brian invests £4700 into his bank

account.
He receives 5.5% per year compound
interest.
How much will Brian have after 3
years?
Give your answer to the nearest penny
where appropriate.
GIVE ME THE RIGHT AWNSER BISHES

Answer 1

$5518.93

Explanation:

Compound interest formula:

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

where P is the principal (starting amount), r is the interest rate, n is the number of times compounded per year, and t is the time in years.

The known variables are:

• P = $4700
• r = 5.5%
• n = 1
• t = 3

Plug those 4 into the equation now and solve for A:

`\rightarrow A=4700(1+0.055)^3\\\rightarrow A=4700(1.055)^3\\\rightarrow A=4700*1.1742\\\rightarrow A=5518.9345`