Question

£2,000 is invested for 3 years at a rate of 1.5% per annum compound interest work out the amount of interest at the end of 3 years​

Answer 1

$~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\pounds 2000\\ r=rate\to 1.5\%\to \frac{1.5}{100}\dotfill &0.015\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{per annum, thus once} \end{array}\dotfill &1\\ t=years\dotfill &3 \end{cases}$

$A=2000\left(1+\frac{0.015}{1}\right)^{1\cdot 3}\implies A\approx 2091.36~\hfill \underset{earned~interest}{\stackrel{2091~~ - ~~2091.36}{\approx 91.36}}$