Question

Brian invests £8300 into his bank account.
He receives 1.4% per year compound interest.
How much will Brian have after 7 years?
Give your answer to the nearest penny where appropriate.
£

Answer 1

Answer:

£9148.37

Step-by-step explanation:

in compound interest,

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

A = amount

P = principal = £8300

r = rate = 1.4%

t = time = 7 years

$A=8300(1+\frac{1.4}{100})^{7}$

$A=8300(1+0.014)^{7}$

$A=8300(1.014)^{7}$

A = 8300 × 1.102213396

A = £9148.371186

a penny is one-hundredth of a pound which is two decimal places

so we round up to two decimal places

A = £9148.37