Question

Colin invests £3900 into his bank account. He receives 4% per year compound interest. How much will Colin have after 2 years? Give your answer to the nearest penny where appropriate.

Answer 1

Answer:

★ Colin will have 4218.20 ★

Step-by-step explanation:

Given:

• Colin invests 3900 in his bank account ( Principal )
• Rate given is 4%
• Time is 2 years

To Find:

• Amount will Colin have after 2 years

Solution:

★ We know that Amount= Principal( 1 + Rate/100)^n ★

$\small\implies{\sf }$ A = 3900(1 + 4/100)²

$\small\implies{\sf }$ A = 3900 x 104/100 x 104/100

$\small\implies{\sf }$ A = 3900 x 10816/10000

$\small\implies{\sf }$ A = 3900 x 1.0816

$\small\implies{\sf }$ A = 4218.24

† Rounding to nearest penny 4218.24→4218.20

Hence, Colin will have 4218.20 after 2 years

Answer 2

Answer:

Step-by-step explanation:

you do 4% so 2 years so you do 3900 times (1.04) times (1.04) = answer witch eqaules 4218.24 so thats the answer