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qaws [65]
3 years ago
9

Annie invests £9500 for 5 years in a savings account. She gets 1.8% per annum compound interest. How much money does Annie have

at the end of 5 years.
Mathematics
1 answer:
Trava [24]3 years ago
7 0

Answer:

£10386.34

Step-by-step explanation:

The amount in an account for a principal P saved at compound interest for a period of n years at an annual rate of r% is calculated using the formula:

A(n)=P(1+r)^n

In this case:

Principal, P=£9500

r=1.8%=0.018

n=5 years

Therefore:

A(5)=9500(1+0.018)^5\\=9500(1.018)^5\\=\£10386.34

At the end of 5 years, Annie will have £10386.34

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