Question

Dan invests £8200 into his bank account.

He receives 2% per year compound interest.
How much will Dan have after 7 years?
Give your answer to the nearest penny where appropriate.

Answer 1

Answer: £ 3675.79

Explanation:

A = P(1 + r)^t

A = final amount = x

P = initial principal balance = 3200

r = interest rate = 0.02

t = number of years elapsed = 7

x = 3200(1.02)^7

x = 3200 * 1.14868567

x = 3675.79414

x = 3675.79