Question

Claudia invests £25000 at a rate of 2% per year compound interest.
Calculate the total amount of interest she will have earned after 5 years.
Give your answer correct to the nearest penny.

Answer 1

Answer:

27602.02

Step-by-step explanation:

Principal =  £25,000

Rate of interest = 2% per year.

Number of years = 5 years

Formula,

=> £25000 * (1 + $\frac{2}{100}$ )^5

=> £25000 * 1.02^5

=> £25000 * 1.1040808

=> £27602.02

Therefore, the amount = £27602.02

Rounded to the nearest penny is £27602.02

Hope it helps :)