Question

Work out the balance for £240 invested for 20 years at 7% per annum

Answer 1

Explanation:

It depends in the type on interest

Simple Interest

PxRxT

£240 x 0.07x 3 = £50.4

£240 + £50.4 = £290.4

Compound Interest

Px(1+R)^T

£290.4 x (1 + 0.07)³ = £355.7524872= €355.76