Question

Dan invests £8000 into his bank account.

He receives 2% per year compound interest.
How much will Dan have after 3 years?
Give your answer to the nearest penny where appropriate

Answer 1

Explanation:

Dan's investment = £8000

Percentage interest received yearly = 2%

In three (3) years Dan will receive 2/100×£8000

=>0.02×8,000

=>80.

Therefore, in three years, Dan will have 80×3 in three years. Which will be equal to £240

NOTE: In each year, Dan earns £80, therefore he'll earn £240 in three years.