Colin invests £2900 into his bank account.
He receives 3% per year compound interest.
How much will Colin have after 4 years?
Give your answer to the nearest penny where appropriate.
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Answer:
f = p * (1 + r) ^ n
f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods.
In your problem,
p is 2900
r is 3% per year which is equal to .03 per year.
n is 4 years.
The formula becomes f = 2900 * (1 + .03) ^ 4.
When you solve for f you get f = 3263.975549=£3263.98 (approx.)
Step-by-step explanation:
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