Answer:
Step-by-step explanation:
To calculate the compound interest we want to multiply the amount of money (£4700) by the interest (6%) which would be the percentage multiplier!
To get the new amount we do:
Original amount × (percentage multiplier)ⁿ
The amount of years would be the indices.
For the first year:
£4700x1.06= £4982.
But we want to find out how much she will have altogether in different years.
So for two years:
£4700x1.03²= £5280.90 (rounded)
As you can see the amount of years will be the indices with the interest as our multiplier.
We do this again for 5 years and 10 years:
£4700x1.06⁵= £6289.70 (rounded)
£4700x1.06¹⁰=£8416.20 (rounded)
Hope this helps!
