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.

Answer 1

The answer is 775.5.

5.5% of 4700 is 258.5.

258.5 x 3 is 775.6.

Hope this helps, good luck!

Answer 2

£5518.93

Explanation:

The compound interest formula will tell you the value of the investment after 3 years.

__

formula

A = P(1 +r)^t

where principal P is invested at rate r compounded annually for t years.

__

application

A = £4700(1 +0.055)^3 ≈ £5518.93

Brian will have £5518.93 after 3 years.