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

Answer:

★ Brian will have £5518.90 ★

Step-by-step explanation:

Given:

• Brian invests 4700 into his bank account ( Principal )
• Rate is 5.5% per annum
• Time given is 3 years

To Find:

• Amount Brian will after 3 years

Solution:

★ We know that Amount = Principal (1+ r/100 )^n ★

$\small\implies{\sf }$ Amount = 4700 ( 1 + 5.5/100)³

$\small\implies{\sf }$ A = 4700 ( 105.5/100)³

$\small\implies{\sf }$ A = 4700 x ( 1055/1000)³

$\small\implies{\sf }$ A = 4700 x (1.055)³

$\small\implies{\sf }$ A = 4700 x 1.17424......

$\small\implies{\sf }$ A = 5518.928

★ Amount in nearest penny =

• 5518.928 → 5518.93 →5518.90

Hence, Brian will have £5518.90 after 3 years.

Answer 2

Answer:

5518.93

Step-by-step explanation: