Alex invests £3045 into an account that pays 2.25% compound interest per year.

Work out how much Alex will have in the account after 16 years.
Thanks :)

Answers

Answer 1
○=> Correct answer :

Money in Alex's account after 16 years = [tex]\boxed{\bold{\color{plum}£4347.11}}[/tex]

○=> Steps to derive correct answer :

Money invested by Alex = £3045

Percentage of compound interest per annum = 2.25%

We know that :

[tex]\tt \: \color{hotpink}A \color{plum} = P {(1 + \frac{r}{n} )}^{nt} [/tex]

In this case :

Principal = £3045

Rate = 2.25% = 0.0025

Number of times interest is compounded per year = 1

Time = 16 years

Which means :

Money Alex will have in the account after 16 years :

[tex] = \tt3045 ({1 + \frac{ 0.0025}{1} })^{16} [/tex]

[tex] \color{plum}= \tt £4347.11[/tex]

Therefore, the money in Alex's account after 16 years = £4347.11


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Given

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have a great day

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Answers

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Step-by-step explanation:

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Step-by-step explanation:

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Step-by-step explanation:

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Answers

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