Question

Colin invests £3700 into his bank account.
He receives 7% per year simple interest.
How much will Colin have after 4 years?
Give your answer to the nearest penny where appropriate

Answer 1

Answer:

£4736

Step-by-step explanation:

The proper formula for the total amount in the account after a number of years is

A = P + Prt, or A = P(1 + rt)

Here the accumulation A is £3700(1 + 0.07*4), or

A is £3700(1 + 0.07*4)   or   £3700(1 + 0.28)   or   £4736