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Fynjy0 [20]
3 years ago
7

Southern bank has 2 types of avcounts both accounts pay compound interest everyday saver account interest 2.4% per annum 1234 ac

count interest3.4%per annum sue invests £2300 in the saver account bill invests £1800 in the 1234 account interest work ot how much sue and bill each get after 3 years
Mathematics
1 answer:
castortr0y [4]3 years ago
7 0

Answer:

After 3 years, Sue will get £2471.70 and Bill will get £1993.28.

Step-by-step explanation:

Amount at Compound Interest, A=P(1+\frac{r}{k} )^{nk}

Since interest is compounded everyday, period, k=365.

<u>Sue</u>

Amount Invested, P=£2300

Interest Rate Per annum (Saver Account) = 2.4%=0.024

Period, k=365 days

Number of Years, n=3 years

A=2300(1+\frac{0.024}{365} )^{365*3}\\=\£2471.70

<u>Bill</u>

Amount Invested, P=£1800

Interest Rate Per annum (1234 Account ) = 3.4%=0.0034

Period, k=365 days

Number of Years, n=3 years

A=1800(1+\frac{0.034}{365} )^{365*3}\\=\£1993.28

<u>After 3 years, Sue will get £2471.70 and Bill will get £1993.28.</u>

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