Compound interest £2000 for 3 years 5.5% annum
Mathematics · College · Thu Feb 04 2021
Answered on
Given:
Principal Amount ( P ) = £2000
Interes Rate ( r ) = 5.5% or 0.055 ( divide by 100)
Term ( t ) = 3
Compounded continuously ( n ) = 1
Formula for Compound Interest:
A = P ( 1 + r/n)^nt
A = Future value
Solution:
Substitute the given values of P, r, n and t to the formula for the compound interest.
A =£2000 ( 1 + 0.055/1)^(3)(1)
A = £2000( 1.055)^3
A = £2000( 1.174)
A = £2,348.48
Final answer:
A = £2,348.48