Question

Kyle invests £48 000 in an account that pays 3.1 percent compound interest per annum. Work out how much money Kyle will have in his account in years.

Answer 1

Answer:

(If compounded annually)

(first 5 years)

1 year = 48,000(1.031)¹ = £49,488.00

2 years = 48,000(1.031)² = £51,022.13

3 years = 48,000(1.031)³ = £52,603.81

4 years = 48,000(1.031)⁴ = £54,234.53

5 years = 48,000(1.031)⁵ = £55,915.80

Step-by-step explanation:

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

money Kyle will have in his account in x years if compounded annually (once per year) per annum (every year) =

48,000(1 + 3.1%/1)^1x = 48,000(1.031)^x