Question

Kyle invests £48 000 in an account that pays 3.1 percent compound interest per annum. Work out how much money Kyle will have in his account in years.

Answer 1

Answer:

(If compounded annually)

(first 5 years)

1 year = 48,000(1.031)¹ = £49,488.00

2 years = 48,000(1.031)² = £51,022.13

3 years = 48,000(1.031)³ = £52,603.81

4 years = 48,000(1.031)⁴ = £54,234.53

5 years = 48,000(1.031)⁵ = £55,915.80

Step-by-step explanation:

A = P(1 + r/n)^(nt)

money Kyle will have in his account in x years if compounded annually (once per year) per annum (every year) =

48,000(1 + 3.1%/1)^1x = 48,000(1.031)^x

Answer 2

Kyle can expect $48000(1.031)^{n}$ in his account in n years after compounding.

What is compound interest?

The compound interest is the interest calculated on the aggregated interest and the principal amount. The formula to calculate the sum after compound interest is:

S=P$(1+r)^{n}$

How to calculate total amount while compounding?

We have been given amount as 48000 pounds and the rate of compounding is 3.1%. We will apply the above formula to calculate the sum:

S=48000$(1+0.031)^{n}$

Learn more about compound interest at https://brainly.com/question/24924853

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