Question

Dan invests £6800 into his bank account.
He receives 5% per year compound interest.
How much will Dan have after 6 years?
Give your answer to the nearest penny where appropriate.

Answer 1

Answer:

$\frak{Given}\begin{cases}\textsf{Principal = Rs. 6800}\\\textsf{Rate = 5\% p.a.}\\\textsf{Time = 6 years}\\\textsf{Amount = ?} \end{cases}$

$\underline{\bigstar\:\textsf{According to the Question :}}$

$:\implies\tt Amount = P \times \bigg(1 +\dfrac{r}{100}\bigg)^{t}\\\\\\:\implies\tt Amount = 6800 \times \bigg(1 +\dfrac{5}{100}\bigg)^{6}\\\\\\:\implies\tt Amount = 6800 \times \bigg(1 +\dfrac{1}{20}\bigg)^{6}\\\\\\:\implies\tt Amount = 6800 \times \bigg(\dfrac{20 + 1}{20}\bigg)^{6}\\\\\\:\implies\tt Amount = 6800 \times \bigg(\dfrac{21}{20}\bigg)^{6}\\\\\\:\implies\tt Amount = 6800 \times \dfrac{9261}{8000} \times \dfrac{9261}{8000}\\\\\\:\implies\tt Amount =0.85 \times9261 \times \dfrac{9261}{8000} \\\\\\:\implies\underline{\boxed{\tt Amount = Rs\:\:9112.65}}$

⠀

$\therefore\:\underline{\textsf{Dan will get \textbf{Rs. 9112.65} after 6 years.}}$

Answer 2

the answer is £9112.65