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Given parameters:
Principal = £1300
Interest rate = 5%
Duration = 2yrs
Unknown:
Total amount of Dan's principal = ?
To solve this problem, we apply the equation below:
Total investment worth = Principal + interest
Interest =
where P is the principal
R is the rate
T is the time
Now, input the parameters;
Total investment worth = £1300 + £
= £1300 + £130
= £1430
The amount after two years is £1430