Question

Amir pits £3035 into a bank account. The account pays 4% compound interest each year. Work out how much money amir will have in the account after 6 years

Answer 1

Answer:

$\£3840.2$

Step-by-step explanation:

Let P denotes principal amount, T denotes time period and R denotes rate of interest.

Amount = $P(1+\frac{R}{100})^T$

Amir pits £3035 into a bank account. The account pays 4% compound interest each year.

Put $P=\£3035,\,R=4\%,\,T=6$

Amount = $3035(1+\frac{4}{100})^6=3035(\frac{104}{100})^6=\£3840.2$

Therefore, Amir will have $\£3840.2$ in the account after 6 years.