SOLUTION: Dan invests £800 into his bank account.
He receives 5% per year compound interest.
How much will Dan have after 4 years?
Give your answer to the nearest penny where appropri
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Question 1150863: Dan invests £800 into his bank account.
He receives 5% per year compound interest.
How much will Dan have after 4 years?
Give your answer to the nearest penny where appropriate.
Found 6 solutions by MathLover1, VFBundy, MathTherapy, greenestamps, Alan3354, ikleyn:
Answer by MathLover1(20849) (Show Source): You can put this solution on YOUR website!
To find amount we use formula:
where
= total amount
= principal or amount of money deposited,
= annual interest rate
= number of times compounded per year
= time in years
given: , , ,
The amount is $ and the interest gained is $.
Answer by VFBundy(438) (Show Source): You can put this solution on YOUR website!
x = £977.12
Answer by MathTherapy(10549) (Show Source): You can put this solution on YOUR website!
Dan invests £800 into his bank account.
He receives 5% per year compound interest.
How much will Dan have after 4 years?
Give your answer to the nearest penny where appropriate.
Correct answer: £
Answer by greenestamps(13195) (Show Source): You can put this solution on YOUR website!
Note that you have received two different answers for your problem....
The statement of the problem is not perfectly clear, so both answers should be considered correct.
The statement "He receives 5% per year compound interest" only tells what the annual interest rate is; it does not specify how often the interest is compounded.
The lower figure in the answers you have received is for annual compounding; the higher figure is for continuous compounding.
Note that, from a learning standpoint, the important thing for you to see is the difference between the formulas used for periodic compounding and continuous compounding.
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
Dan invests £800 into his bank account.
He receives 5% per year compound interest.
How much will Dan have after 4 years?
Give your answer to the nearest penny where appropriate.
================
You didn't specify the compounding period.
Is it daily?
Monthly?
Annually?
-------
IOW, not enough info.
========================
Math Therapy's "answer" is obviously wrong, since it's in dollars.
Answer by ikleyn(52754) (Show Source): You can put this solution on YOUR website!
.
The solution by @MathLover1 is correct and relevant.
The solution by @VFBuddy is IRRELEVANT: he solved different problem, not that from the post.
@MathTherapy supported the correct solution by @MathLover1, and supported it absolutely correctly.
The posts from other tutors are IRRELEVANT.
The problem clearly says that Dan R E C E I V E D 5% per your compound interest.
In this context, it means that Dan receives 5% compound interest every year during 4 years.
Hence, after 4 years the amount at his account will be £ = £ 972.41. ANSWER
Without any doubts.
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