Question

Dan invests £2200 into a savings account. The bank gives 5% compound interest for the first 3 years and 4% thereafter. How much will Dan have after 7 years to the nearest pound?

Answer 1

Answer:

This can be found by expressing it this way, calling the amount A,

A = (2200(1.05)^3)*(1.04)^4 = 2979.37 pounds or 2979 pounds to the nearest pound.