Question

Colin invests £2350 into a savings account. The bank gives 4.2% compound interest for the first 4 years and 4.9% thereafter. How much will Colin have after 10 years to the nearest pound?

Answer 1

Answer:

1500(1+0.04)^3 = 1687.30

1687.30(1+0.05) = 1771.67 to the nearest pound: 1772