Question

Dan invests £1200 into his bank account. He receives 5% per year compound interest. How much will Dan have after 5 years? Give your answer to the nearest penny where appropriate.

Answer 1

Step-by-step explanation:

If you deposit $4500 into an account paying 7% annual interest compounded semi anualy , how much money will be in the account after 9 years?

Result

The amount is $8358.7 and the interest is $3858.7.

Explanation

STEP 1: To find amount we use formula:

A=P(1+rn)n⋅t

A = total amount

P = principal or amount of money deposited,

r = annual interest rate

n = number of times compounded per year

t = time in years

In this example we have

P=$4500 , r=7% , n=2 and t=9 years

After plugging the given information we have

AAAA=4500(1+0.072)2⋅9=4500⋅1.03518=4500⋅1.857489=8358.7

STEP 2: To find interest we use formula A=P+I, since A=8358.7 and P = 4500 we have:

A8358.7II=P+I=4500+I=8358.7−4500=3858.

Answer 2

Aɴꜱᴡᴇʀ

Amount=1532

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Fᴏʀᴍᴜʟᴀ Uꜱᴇᴅ

$A=P({1+r)}^{t}$

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Sᴛᴇᴘꜱ

• P=1200

• r=5%=0.05

• t=5 years

So by substituting them in the formula given above we get

$A=1200({1+0.05)}^{5}\\A=1200({1.05)}^{5}\\A=1200 \times 127628\\A=1531.5378\\ =1532$

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