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tatiyna
3 years ago
7

4 of 9

English
1 answer:
Alisiya [41]3 years ago
4 0

Answer:

A = £402.03

Explanation:

Given the following data;

Principal = £300

Interest rate = 5% = 5/100 = 0.05

Time = 6 years

Number of times, n = 1

To find the future value, we would use the compound interest formula;

A = P(1 + \frac{r}{n})^{nt}

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.

Substituting into the equation, we have;

A = 300(1 + \frac{0.05}{1})^{1*6}

A = 300(1 + 0.05)^{6}

A = 300(1.05)^{6}

A = 300*1.3401

A = £402.03

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