Oscar opens a savings account which gives compound interest of $3.5 %$ per year. He puts $£ 2000$ into it.
a) How much money will Oscar have in the account after 9 years?
b) How much interest will Oscar have earned from this account after 9 years?

Give your answers in pounds $(£)$ to the nearest $1 p$ .

Answer

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Answer

$2725.79$ is the amount Oscar will have in the account after 9 years

Steps

Step 1 ：Let's use the compound interest formula: A = P(1 + r/n)^(nt)

Step 2 ：Given: P = 2000, r = 0.035, n = 1, and t = 9

Step 3 ：Plug these values into the formula: A = 2000(1 + 0.035/1)^(1*9)

Step 4 ：Calculate the amount: A = 2725.794706514244

Step 5 ： $2725.79$ is the amount Oscar will have in the account after 9 years