Claire invests £200,000 in a savings account for 4 years. The account pays a compound interest of 1.6% annum. Calculate the total amount of interest Claire will get at the end of four years.

Question

Mathematics

Frank Frey

28 June, 04:03

Claire invests £200,000 in a savings account for 4 years. The account pays a compound interest of 1.6% annum. Calculate the total amount of interest Claire will get at the end of four years.

+5

Answers (1)

Know the Answer?

Sanford · Answer 1

Answer: total amount of interest = £13110.49

Step-by-step explanation:

given that the

Principal P = £200,000

Time t = 4 years.

Rate R = 1.6%

Amount = P (1 + R%) ^t

Amount = 200000 (1 + 1.6%) ^4

Amount = 200000 (1.016) ^4

Amount = 200000 * 1.06555245

Amount = £213110.49

The total amount of interest = amount - principal

Total amount of interest = 213110.49 - 200000

The total amount of interest = £13110.49

Therefore, Claire will get a total amount of interest of £13110.49 at the end of four years