layladavis0307 layladavis0307
  • 02-12-2020
  • Mathematics
contestada

Dan invests £8200 into his bank account he receives 2% per year compound interest how much will Dan have after 7 years ?

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jimthompson5910 jimthompson5910
  • 02-12-2020

Answer:   £9419.22

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Work Shown:

A = P*(1+r/n)^(n*t)

A = 8200*(1+0.02/1)^(1*7)

A = 9419.2224747241

A = 9419.22

Note: I assumed the bank is using annual compounding. The instructions didn't mention it, so that's why I went with n = 1. If your teacher or textbook mention otherwise, say monthly compounding, then you'll change n to n = 12. I would ask for clarification.

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