Heather invests £900 for 3 years at 2% per annum compound interest. Calculate the value of her investment at the end of the 3 years.
At 2% interest rate, we can multiply the amount by 102% for each year (100% + 2%). Each of the 3 years have to be calculated individually as follows: Year 1: 900 x 102% = 918 Year 2: 918 x 102% = 936.36 Year 3: 936.36 x 102% = 955.09 Therefore, final value after 3 years = £955.09.
ZH
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