Question

Colin invests £3500 into his bank account.
He receives 5% per year compound interest.
How much will Colin have after 6 years?
Give your answer to the nearest penny where appropriate.

Answer 1

Answer: 4,690.33

Step-by-step explanation:

The formula for calculating amount is given by :

A = P $(1+r)^{n}$

Where :

A = amount = ?

P = Principal = 3500

r = rate = 0.05

n = number of years  = 6

substituting the given values into the formula , we have

A = 3500$(1+0.05)^{6}$

A = 3500 $(1.05)^{6}$

A = 3500 (1.340095640625)

A = 4690.3347421875

A = 4,690.33