Brian invests £1900 into a savings account. the bank gives 3.5% compound interest for the first 2 years and 4.9% thereafter. how much will brian have after 6 years to the nearest pound?

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

step 1

Find the final investment for the first two years

we have  

substitute in the formula above  

step 2

Find the final investment for the next 4 years

we have  

substitute in the formula above  

Round to the nearest pound

make sure you have version 2.50

try looking in the very back of the book : )

step-by-step explanation:

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