Question

Brian invests £1900 into a savings account. The bank gives 3.5% compound interest for the first 2 years and 4.9% thereafter. How much will Brian have after 6 years to the nearest pound

Answer 1

$2465

Explanation:

Remember your annual interest rate formula (appreciation): A = P(1 + r)^t

Step 1: Solve for the first 2 years

1900(1 + 0.035)² = 2035.33

Step 2: Solve for the next 4 years

2035.33(1 + 0.049)^4 = 2464.54