Question

Dan invests £3400 into his bank account.

He receives 5% per year compound interest.
How much will Dan have after 6 years?
Give your answer to the nearest penny where appropriate

Answer 1

$4556

Explanation:

Step one:

given data

Principal =£3400

rate= 5%= 0.05

time = 6years

Step two:

Required

The final amount A

A= P(1+r)^t

A=3400(1+0.05)^6

A=3400(1.05)^6

A=3400*1.341

A=$4556

after 6 years Dan will have $4556