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hichkok12 [17]
3 years ago
7

Claire invests £200,000 in a savings account for 4 years. The account pays a compound interest of 1.6% annum. Calculate the tota

l amount of interest Claire will get at the end of four years.
Mathematics
1 answer:
AURORKA [14]3 years ago
6 0

Answer: total amount of interest = £13110.49

Step-by-step explanation:

given that the

Principal P =  £200,000

Time t = 4 years.

Rate R = 1.6% 

Amount = P( 1 + R% )^t

Amount = 200000( 1 + 1.6%)^4

Amount = 200000 (1.016)^4

Amount = 200000 × 1.06555245

Amount = £213110.49

The total amount of interest = amount - principal

Total amount of interest = 213110.49 - 200000

The total amount of interest = £13110.49

Therefore, Claire will get a total amount of interest of £13110.49 at the end of four years

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