Question

Work out the balance for £720 invested for 4 years at 5% per annum

Answer 1

Amount of Interest (I) = P * R * T /100
I = 720 * 5 * 4 /100
I = 144

Balance = Initial amount + Interest amount
B = 720 + 144 = 864

In short, Your Answer would be £864

Answer 2

i know you asked this question ages ago but if you do 720 × $1.05^{4}$ it will equal 875.1645 and therefore £875.16