Question

What the future value and the compound interest when £1000 is invested for 5 years at 6% p.a?.

Answer 1

I'll assume its compounded annually

the formula is

\[A=P(1 + \frac{r}{100})^n\]

A = future value, P = Principal (amount invested}
r = interest rate, n = number of time periods

substituting you'll have

\[A = 1000(1 + \frac{6}{100})^5\]

just type it into a calculator.

Answer 2

Thank you! I just get mind blocked sometimes :) Thanks again