Holly invested £3000 in a savings account the account paid compound interest of 4% per year work out how much was in the account after one year

Question

Mathematics

Mollie Rodgers

26 April, 04:07

Holly invested £3000 in a savings account the account paid compound interest of 4% per year work out how much was in the account after one year

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Answers (1)

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Gisselle Murphy · Answer 1

Exponential function

form of interest rates

P (1 + r) ^x

where p is the prime and r is rate of change and x is time in years

3000 (1 + 4%) ^1

The answer would be

3000 (1.04) ^1 = 3120 Euros