Question

Colin invests £4800 into his bank account.
He receives 3% per year compound interest.
How much will Colin have after 7 years?
Give your answer to the nearest penny where appropriate.
The penny part is important, don't round it just put in the . whatever

Answer 1

Step-by-step explanation:

Given:

• Colin invests 4800 into his bank account ( Principal)
• Rate is 3% per year
• Time given is 7 years

To Find:

• Amount will have Colin have after 7 years

Solution:

★ We know the formula Amount = Principal ( 1 + r/100)^n ★

$\small\implies{\sf }$ A = 4800(1+3/100)^7

$\small\implies{\sf }$ A = 4800(103/100)^7

$\small\implies{\sf }$ A = 4800 x (1.03)^7

$\small\implies{\sf }$ A = 4800 x 1.22987........

$\small\implies{\sf }$ A = 5903.376

† Amount in nearest penny =

→ 5903.376 → 5903.40

Hence, Colin will have £5903.40 after 7 years