Question

Brian invests £6600 into his bank
account.
He receives 0.6% per year compound
interest.
How much will Brian have after 6 years?
Give your answer to the nearest penny
where appropriate.
O
→ £ 1

Answer 1

Answer:

See Below

Step-by-step explanation:

The equation for this scenario would be  ( compounded annually)

6600 ( 1 + .006)^6         = £ 6841.19

Answer 2

Answer:

Brian will have £6841.19 after 6 years.

Step-by-step explanation:

The compound interest formula is:

$A = P( 1 +\frac{r}{100} )^{n}$ ,

where A is the final amount, P is the initial (principal) amount invested (£6600), r is the interest rate (0.6%) and n is the number of years the money is kept for (6 years).

Using the formula:

$A = 6600(1 + \frac{0.6}{100} )^{6}\\\\A = 6841.19$