Question

A bank pays interest at 7.5%. £7500 is invested for 8 years.
A). What is the balance after 8 years?
B). How much interest is earned?

Answer 1

7.5% p.a. with compounding ?

Answer 2

what does p a mean?

Answer 3

7.5% interest a year

Answer 4

yes

Answer 5

\[A = P(1+r)^t\]A: return
P: Principal (£7500)
r: yearly interest in decimal (0-1.0 for 0-100%)
t: period

Answer 6

what?

Answer 7

this is the formula you have to use, insert values and calculate

Answer 8

do you know how to get "r" from the interest rate?

Answer 9

@ryanvarghese1279

Answer 10

if you have calculated "A", you can get interest earned by subtracting the initial principal of £7500 - then you get everything all interest has added to the account.

Answer 11

and you get "r" by dividing the 7.5% by 100