SOLUTION: Could someone please help me answer this question, the wording of this question throws me off slightly: Calculate the following to the nearest penny
The interest after 4 years on
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The interest after 4 years on
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Question 894472: Could someone please help me answer this question, the wording of this question throws me off slightly: Calculate the following to the nearest penny
The interest after 4 years on £88500.00 invested at 5% p/a compound interest.
Is the question telling me to find out the difference between the original price and the price after 4 years with interest, or is it simply asking me to find the total value of the money after the 4 years with interest?
Thank you for taking a moment of your time to help me :) Answer by rothauserc(4718) (Show Source):
You can put this solution on YOUR website! The problem is asking for the interest accrued, we use the following formula
FV = PV × (1+r)^n
where FV = Future Value
PV = Present Value
r = annual interest rate
n = number of periods
FV = 88500 x (1+0.05)^4
FV = 107572.30
therefore interest accrued is = 107572.30 - 88500 = 19072.30 pounds
