Question

Brian invests £8500 into his bank account. He receives 5.7% per year compound interest. How much will Brian have after 6 years? Give your answer to the nearest penny where appropriate.

Answer 1

Given:

Brian invests £8500 into his bank account

He receives 5.7% per year compound interest

To find:

How much will Brian have after 6 years?

Solution:

The formula to calculate the amount in compound interest is as follows:

$\boxed{\bold{A = P [1+\frac{R}{100} ]^n}}$

Now, we will substitute the given values in the above formula:

$A = 8500 [1+\frac{5.7}{100} ]^6}}$

$\implies A = 8500 [1+0.057 ]^6}}$

$\implies A = 8500 [1.057 ]^6}}$

$\implies A = 8500 \times 1.3946$

$\implies A = 11854.10$

rounding the final answer to its nearest penny

$\implies A =$ £ $\bold{11854}$

Thus, Brain will have £ 11854 after 6 years.

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Answer 2

Answer:

11854.11

Step-by-step explanation: