If I have £730 in my bank account which has 2.5% compound interest per year, how much more money will be in there after two years?

AFTER 1 YEAR: interest = £730 x 0.025 = £18.25

Rotal money in my account = £730 + £18.25 = £748.25.

AFTER 2 YEARS: interest = £748.25 x 0.025 = £18.706

Total money in my account = £766.96 (remember to round to the nearest penny)

ALTERNATIVELY:

£730 x (1.025)2 = £766.96

HOW MUCH MONEY HAVE I MADE?

Money after two years - money I put in = £766.96 - £730 = £36.96

SH
Answered by Sally H. Maths tutor

3879 Views

See similar Maths GCSE tutors

Related Maths GCSE answers

All answers ▸

Solve the simultaneous equation 2x + y = 18 and x - y = 6


Find the value of X and Y if X^2 + Y^2 = 13 and 2X + Y = 1


The size of each interior angle of a regular polygon is 11 times the size of each exterior angle. Work out how many sides the polygon has.


Where do the two lines intersect? (a) 3x+6y= 15 (b) y= 6x -4 (GCSE-Higher Tier)


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences