Dan invests £7600 into his bank account. He receives 3% per year compound interest. How much will Dan have after 4 years? Give your answer to the nearest penny where appropriate
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Answered by
1
Answer:
Dan will have £ 8553.87 after 4 years.
Explanation:
Formula : A=P(1+\dfrac{r}{100})^tFormula:A=P(1+
100
r
)
t
where P= Principal amount
r= rate of interest
t= time
As per given , we have
P= £7600 , r= 3% and t= 4 years
Put all values in formula , we get
\begin{gathered}\begin{gathered}A=(7600)(1+\dfrac{3}{100})^4\\\\= (7600)(1.03)^4\\\\= 7600(1.12550881)\\\\=8553.866956\approx8553.87\end{gathered}\end{gathered}
A=(7600)(1+
100
3
)
4
=(7600)(1.03)
4
=7600(1.12550881)
=8553.866956≈8553.87
∴ Dan will have £ 8553.87 after 4 years.
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Answer:
Dan will have £ 8553.87 after 4 years.
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