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Colin invests £2900 into his bank account.
He receives 3% per year compound interest.
How much will Colin have after 4 years?
Give your answer to the nearest penny where appropriate.

Respuesta :

semsee45

Answer:

£3263.98 (nearest penny)

Step-by-step explanation:

Compound interest formula

[tex]\sf A=P(1+\frac{r}{n})^{nt}[/tex]

where:

  • A = final amount
  • P = principal
  • r = interest rate (in decimal form)
  • n = number of times interest applied per time period
  • t = number of time periods elapsed

Given:

  • P = £2900
  • r = 3% = 0.03
  • n = 1
  • t = 4

Substituting given values into the formula and solving for A:

[tex]\implies \sf A=2900(1+\frac{0.03}{1})^{1 \times 4}[/tex]

[tex]\implies \sf A=2900(1.03)^{4}[/tex]

[tex]\implies \sf A=3263.975549[/tex]

Therefore, Colin will have £3263.98 after 4 years (to the nearest penny).

fieryanswererft

Answer:

$3264

Explanation:

[tex]\sf compound \ interest : P(1+\frac{r}{100} )^n[/tex]  
"P" is principal, "r" is rate of interest, "n" is time (years)

Here given:

  • principal: £2900
  • rate of interest: 3%
  • time: 4 years

After 4 years amount:

[tex]\rightarrow \sf 2900(1+\frac{3}{100})^4[/tex]

[tex]\rightarrow \sf 2900(1.03)^4[/tex]

[tex]\rightarrow \sf 3263.9755[/tex]

[tex]\rightarrow \sf 3264[/tex]  (rounded to nearest whole number)

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