Question

Colin invests £3300 into his bank account.

Answer 1

Answer:

$3714.18

Step-by-step explanation:

From the question;

Amount invested is $3300

Rate of interest 3% per year compound interest

Time is 4 years

We want to determine the amount that accrued after 4 years

In this case we are going to use the compound interest formula;

That is;

$A=P(1+(\frac{R}{100})^n$where A is the amount, P is the principal , r is the rate of interest and n is the time taken.

Therefore;

$Amount=3300(1+(\frac{3}{100})^4\\ = 3300(1.03)^4\\ = 3300(1.1255)\\ = 3,714.179$

= $3714.18

Therefore, the amount accrued after 4 years is $3714.18