Mark invests £2000 on an account that gives 4% compound interest.what will the value of his investment be after 6 years

Question

asked Jan 27, 2021 18.3k views

1 Answer

Malvinka · Answer 1 · 2021-01-31T17:04:48+0000

Answer: £2530.64

Explanation:

The formula for calculating amount is given as :

A = P
(1+r)^(n)

Where :

A = amount

P = principal

r = rate%

n = number of years

Substituting the values of each into the equation we have

A = 2000
(1+0.04)^(6)

A = 2000 (
1.04^(6) )

A = 2530.638037

A ≈ £2530.64