Brian invests £4900 into his bank account. He receives 1.5% per year compound interest. How much will Brian have after 4 years? Round your answer to 2 D.P
Question
He receives 1.5% per year compound interest.
How much will Brian have after 4 years?
Round your answer to 2 D.P
2 Answer
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1. User Answers mhanifa
Answer:
 £5200.68
Stepbystep 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:
 [tex]F = P*(1+r/n)^{nt}\\[/tex]
 [tex]F = 4900*(1+0.015/1)^{1*4}=4900*1.015^4 = 5200.68[/tex]

2. User Answers Hi1315
Answer:
£ 5200.37
Stepbystep 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.
[tex]A = P [ 1 + \frac{r}{100} ] ^{n}[/tex]
Here,
A ⇒ Amount
P ⇒ Money invested ⇒ £4900
r ⇒ Percentage ⇒ 1.5%
n ⇒ No. of years ⇒ 4 years
Let us solve now.
[tex]A = P [ 1 + \frac{r}{100} ] ^{n}[/tex]
[tex]A =4900[1+\frac{1.5}{100} ]^{4}[/tex]
[tex]A =4900[1.015]^{4}[/tex]
[tex]A=4900[1.0613][/tex]
[tex]A=5200.37[/tex]
Hope this helps you :)