Question

Brian invests £4900 into his bank account.
He receives 1.5% per year compound interest.
How much will Brian have after 4 years?
Give your answer to the nearest penny where appropriate.
£

Answer 1

Amount of money Brian have after 4 years = ₹1,91,406.25

To nearest penny = 1,91,406.3

Step-by-step explanation:

Principle = ₹4900 (P)

Rate = 1.5% (R)

Time = 4 (T)

A = P(1+R/100)∧T

A = 4900(1+1.5/100)⁴ [1.5/10 = 15, we do this to remove point, so cut one zero and remove the point.]

4900(1+15/10)⁴ [ You can cancel it by 5]

4900(1+3/2)⁴

4900(2/2+3/2)⁴ [L.C.M is 2]

4900 × 5/2 × 5/2 × 5/2 × 5/2

= ₹1,91,406.25

Amount of money Brian have after 4 years = ₹1,91,406.25

To nearest penny = 1,91,406.3

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