Answer: Rohan will have £3311 in his savings account for 4 years
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = 3000
r = 2.5% = 2.5/100 = 0.025
n = 1 because it was compounded once in a year.
t = 4 years
Therefore,.
A = 3000(1+0.025/1)^1 × 4
A = 3000(1.025)^4
A = £3311
