Andy invests £12 000 in a variable rate compound interest account.
The interest is
2% for the first year
3.5% for the second year
5% for the third year

Work out the value of Andy's investment at the end of 3 years.

Question

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Respuesta :

hnori22003 hnori22003 · Answer 1 · 2020-10-10T18:13:19+02:00

One year later :

[tex]12000 + 12 000 \times \frac{2}{100} = \\ [/tex]

[tex]12000 + 120 \times 2 = [/tex]

[tex]12000 + 240 = 12240[/tex]

That's for first year.

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One year later :

[tex]12240 + 12240 \times \frac{3.5}{100} = \\ [/tex]

[tex]12240 + 122.4 \times 3.5 = [/tex]

[tex]12240 + 428.40 = [/tex]

[tex]12668.4[/tex]

That's for second year.

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[tex]12668.4 + 12668.4 \times \frac{5}{100} = \\ [/tex]

[tex]12668.4 + 126.684 \times 5 = [/tex]

[tex]12668.4 + 633.42 = [/tex]

[tex]13301.82[/tex]

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I think this is the correct answer...

And we're done.

Thanks for watching buddy good luck.

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