Problem

Bryn takes out a loan of £800. This debt increases by 28% every year.
How much money will Bryn owe after 14 years?
Give your answer in pounds (£) to the nearest 1p.

Answer

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Answer

25353 pounds is the amount Bryn will owe after 14 years

Steps

Step 1 :Calculate the amount Bryn will owe after 14 years using the formula: Amount=Principal(1+Rate)Time

Step 2 :Plug in the values: Amount=800(1+0.28)14

Step 3 :Calculate the amount: Amount=25353.012004564596

Step 4 :Round the amount to the nearest pound: Amount=25353

Step 5 :25353 pounds is the amount Bryn will owe after 14 years

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