Question

dave invests in £7400 at 3.5% per annum for 3 years. Use compound interest to work out the amount in the account at the end of 3 years????

Answer 1

Step-by-step explanation:

Interest for the first year:

I = P/100 ×R×T

I = 7400/100 × 3.5 × 1

I = 74 × 3.5

I = 259

Amount = P + I

Amount = 7400 + 259

Amount = 7659

Interest for second year:

I = P/100 × R × T

I = 7659/100 × 3.5 × 1

I = 76.59 × 3.5

I = 268.06

Amount = 7659 + 268.06

Amount = 7927.06

Interest for third year:

I = P/100 × R × T

I = 7927.06/100 × 3.5 × 1

just find out the amount here like this

lastly, CI = Amount in the third year - initial principal(7400)

im tired :)