Question

Brian invests £4900 into his bank account.

Answer 1

Answer:

• £5200.68

Step-by-step explanation:

Given:

• Investment P = £4900
• Interest rate r = 1.5% or r = 0.015
• Time t = 4 years
• Number of compounds per year n = 1

Find the future amount:

• $F = P*(1+r/n)^{nt}$
• $F = 4900*(1+0.015/1)^{1*4}=4900*1.015^4 = 5200.68$

Answer 2

Answer:

£ 5200.37

Step-by-step explanation:

You can use the below formula to find the total amount of money which he will receive after n years when he invests in compound interest.

$A = P [ 1 + \frac{r}{100} ] ^{n}$

Here,

A ⇒ Amount

P ⇒ Money invested ⇒ £4900

r ⇒ Percentage ⇒ 1.5%

n ⇒ No. of years ⇒ 4 years

Let us solve now.

$A = P [ 1 + \frac{r}{100} ] ^{n}$

$A =4900[1+\frac{1.5}{100} ]^{4}$

$A =4900[1.015]^{4}$

$A=4900[1.0613]$

$A=5200.37$

Hope this helps you :-)