Question

In 2013 Traci joined a swim club. The fees were £600 per year in 2013. Each year the fees increase by 6%. Calculate, to nearest £, the fees in 2016.

Answer 1

Answer:

715 pounds

Step-by-step explanation:

FV = solve

PV = 600

I% = 6

K = 1, N = 3 (2013 - 2016 = 3 years)

Plug it in:

FV = 600 x [ 1 + (6/100 x 1)]³

= 600 x ( 1 + 0.06)³

= 600 x (1.06)³

FV = 714.61, 715 to the nearest dollar.

Therefore, the fee in 2016 is 715 pounds.