What is the value of an investment of £4500 with compound interest of 1.3% after six years?

We solve this by multiplying the starting value, £4500 , by 1 + {the interest rate expressed as a decimal} , or in this case, 1 + 0.013 . This gives us £4500 x 1.0136 and when we type this into our calculator, we get £4,862.607168... but when dealing with money we only ever work to two decimal places, making this £4862.61

MC

Related Maths GCSE answers

All answers ▸

How do you find the maximum and minimum value of a quadratic function with no use of calculus?


solve the quadratic equation: x^2-4x+3=0


Factorise a^2 + a - 30


The ratio 2 centimetres to 6 metres can be written in the form 1 : n. Find the value of n.