Question

Brian invests £7900 into his bank account. He receives 2.3% per year compound interest. How much will Brian have after 5 years?

Answer 1

Given :

Brian invested £7900 at the rate of 2.3% for 5 years.

To Find :

The Future amount Brian will get.

Solution :

Brian invests £7900 at 2.3% compound interest.

Formula of compound interest

$A=P(1+\frac{R}{100})^{t}$

A = Future amount

P = Principal amount = £7900

R = rate of interest = 2.3%

t = Time in years = 5 years

Now put the values in to formula

$A=7900 (1+\frac{2.3}{100})^5$

  $=7900(1+0.023)^5$

  = 7900( 1.023)⁵

  = 7900 × 1.12041308

  = 8851.26

Brian will get £8851.26 after 5 years.