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Margarita [4]
2 years ago
11

Perrie invests £25000 for 3 years in a saving account. She gets 2.7% per annum compound interest. Calculate the total amount of

interest perrie will get after 3 years.
Mathematics
1 answer:
aleksandr82 [10.1K]2 years ago
3 0

Answer:

I (interest) = £ 2,080.17

Step-by-step explanation:

Perrie invests £25000 for 3 years in a saving account. She gets 2.7% per annum compound interest. Calculate the total amount of interest perrie will get after 3 years.

To solve the above question, we would use the Periodic compound interest formula

A = P(1 + r) ^t

Where P = Principal = £25000

r = Interest rate = 2.7 % = 0.027

t = time in years = 3 years

Hence:

A = £25,000( 1 + 0.027)³

A = £27,080.17

A = P + I where

P (principal) = £ 25,000.00

I (interest) = £27,080.17 - £ 25,000.00

I (interest) = £ 2,080.17

The total amount of interest perrie will get after 3 years is £ 2,080.17

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