Liam invests £6200 for 3 years in a savings account. He gets 2.5% per annum compound interest. How much money will Liam have in his savings account after 3 years?

a f t er f i rs t ye a r : 6200 + 2 , 5% ∗ 6200 = 6200 + 0 , 025 ∗ 6200 = 6200 + 155 = 6355$ a f t er seco n d ye a r : 6355 + 2 , 5% ∗ 6355 = 6355 + 0 , 025 ∗ 6355 = 6355 + 158 , 875 = 6513 , 875$ a f t er t hi r d ye a r : 6513 , 875 + 2 , 5% ∗ 6513 , 875 = 6513 , 875 + 0 , 025 ∗ 6513 , 875 = 6513 , 875 + 162 , 846875 = 6676 , 721875$ A f t er 3 ye a rs h e w i ll ha v e 6676 , 721875$.

Answered by luana | 2024-06-10

After 3 years, Liam will have approximately £6676.71 in his savings account from his initial investment of £6200 at a compound interest rate of 2.5% per annum. This amount results from applying the compound interest formula. The interest is calculated on the increasing balance each year, leading to more significant growth over time.
;

Answered by luana | 2024-09-30