Question

Derek invests £154 500 for 2 years at 4% per year compound interest.
Work out the value of the investment at the end of 2 years.

Answer 1

Answer:

p=£154,500

T=2years

R=4%

Compound Amount (CA) =?

Now,

CA=p(100+R/100)^T

=154500*(100+4/100)^2

=154500*(104/100)^2

=154500*(1.04)^2

=154500*1.0861

=167107.2

Therefore The value of the investment will be £167107.2 after 2year