Question

Susanna invested £2000 for 3 years at 4% interest per annum compound interest. Work out the amount of interest Susanna had earned after 3 years.

Answer 1

Step-by-step explanation:

compund interest A = p(1+I)^n

therefore

A =amt=?

p= 2000

I = r/100 = 4/100= 0.04

n=3

2000(1+0.04)^3= 2000(1.04)^3

2000(1.124864) = 2,249.728 = A

compound interest = A -P

2249.728-2000= 249.728