MYTUTOR SUBJECT ANSWERS

322 views

If I put £500 in the bank with an annual interest rate of 3% how much money will I have earned in 2 years?

Too calculate this we need to increase to total amount of money in the bank by 3% year on year for 6 years.

Year 0   £500

Year 1   £500 x 1.03 = £515

Year 2   £515 x 1.03 = £530.45

Notice we use the running total and increase that by 3% per year.

This can also be represented as £500 x 1.03 x 1.03 or £500 x 1.03^2.

To work out how much we have earned, it is then a simple matter of subtracting £500 from £530.45 leaving us with £30.45.

You will earn £30.45 in 2 years.

Ahmad T. GCSE Maths tutor, GCSE Biology tutor, GCSE Chemistry tutor

2 years ago

Answered by Ahmad, a GCSE Maths tutor with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

461 SUBJECT SPECIALISTS

PremiumRyan G. GCSE Maths tutor, GCSE Physics tutor, GCSE Computing tutor, A...
£22 /hr

Ryan G.

Degree: Electrical Engineering with Renewable Energy (Masters) - Edinburgh University

Subjects offered:Maths, Physics+ 2 more

Maths
Physics
Computing
-Personal Statements-

“ I will offer a wide range of ways to learn so you can find a way that best suits you!”

£22 /hr

Pooja D.

Degree: Medicine (Bachelors) - Birmingham University

Subjects offered:Maths, Science+ 6 more

Maths
Science
Physics
Chemistry
Biology
.UKCAT.
-Personal Statements-
-Medical School Preparation-

“I have tutored for the past 4 years and have gathered many ways of teaching concepts to students in a way that is easily-digestible and understandable. ”

£18 /hr

Garik M.

Degree: International Relations (Bachelors) - Kings, London University

Subjects offered:Maths, Russian+ 1 more

Maths
Russian
Government and Politics

“In order to achieve high grades in exams student should read about the subject a lot and try to writer past papers as frequently as possible (time the paper).”

About the author

Ahmad T.

Currently unavailable:

Degree: Philosophy, Politics and Economics (Bachelors) - Durham University

Subjects offered:Maths, Chemistry+ 1 more

Maths
Chemistry
Biology

“Top tutor from the renowned Russell university group, ready to help you improve your grades.”

MyTutor guarantee

You may also like...

Posts by Ahmad

Describe and explain the trend in reactivity down the alkali metals group.

If I put £500 in the bank with an annual interest rate of 3% how much money will I have earned in 2 years?

What are the advantages of animals eating excess food and putting on weight for winter?

Other GCSE Maths questions

Mark wants to borrow money to buy a car. His bank offers him a loan of £5,000 to be payed back over 3 years at 4% compound interest. a) Work out the interest acquired in the 2nd year. b) In total how much will Mark end up paying back the bank?

Make y the subject of the formula: 3y-p=h(2+y).

How do you factorise and know if it is a difference of two squares ?

Solve: 4x + 5 = 6x - 13

View GCSE Maths tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok