SOLUTION: Colin invests £2900 into his bank account. He receives 3% per year compound interest. How much will Colin have after 4 years? Give your answer to the nearest penny where app

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Question 1137131: Colin invests £2900 into his bank account.
He receives 3% per year compound interest.
How much will Colin have after 4 years?
Give your answer to the nearest penny where appropriate

Answer by Theo(13342)   (Show Source): You can put this solution on YOUR website!
f = p * (1 + r) ^ n

f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods.

in your problem.

p is 2900
r is 3% per year which is equal to .03 per year.
n is 4 years.

the formula becomes f = 2900 * (1 + .03) ^ 4.

solve for f to get f = 3263.975549.


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