Question

A bank promises to pay 5.5% pa compound interest on

deposits of £2337 if saved for 3 years. How much will the
savings be worth at the end of the period mentioned? Write
your answer correct to 2 decimal places.
Answer:​

Answer 1

• £407.20

Explanation:

• Deposit = £2337
• Interest = 5.5% pa compound
• Time = 3 years

Savings:

• 2337*((1 + 5.5/100)^3 - 1) =
• 2337*((1.055)^3 - 1) =
• 407.20