Question

6 An account pays

Answer 1

Answer: £122.4

Step-by-step explanation:

Given

The rate of interest is 4%

The principal invested is £1500

the time period is 2 years

Compound interest is given by

$C.I.=P(1+r\%)^t-P$

put values

$C.I.=1500(1+0.04)^2-1500\\C.I.=1500[1.04^2-1]\\C.I.=1500[1.0816-1]\\C.I.=1500\times 0.0816\\C.I.=122.4$

Therefore, interest earned is £122.4