SOLUTION: Liam invests £6200 for 3 years in a savings account. He gets 2.5% per annum compound interest. How much money will Liam have in his savings account at the end of 3 years?

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Question 826503: Liam invests £6200 for 3 years in a savings account. He gets 2.5% per annum compound interest. How much money will Liam have in his savings account at the end of 3 years?
Answer by josgarithmetic(39613) About Me  (Show Source):
You can put this solution on YOUR website!
Compounded annually, so P=I%281.025%29%5Et;
P is balance at after time t,
I is initial balance for t=0
t is time in years

Let t=3 and calculate P.
P=6200%281.025%29%5E3
P=6678