Question

The amount of money in Joe’s savings account is increased by 8% each year. Given that he has £500 in 2016. Work out how much Joe will have in 2021.

Answer 1

£700

Explanation:

First we find the interest on this money.

Interest = Principal * Rate * Time

=
`(500 * 8 * 5)/(100)`

=5 * 8 * 5

=£200

Interest = £200

Now you add his actual money to the interest you just found to give you the total amount.

Amount = £500 + £200

= £700