Answer:
£9950.72
Step-by-step explanation:
Hello,
The question above relates to compound interest and to solve it, we'll require the formula needed.
A = P(1 + r/n)^nt
A = compound interest
P = principal = £9200
r = rate = 4% = 0.04
n = number of times the interest is compounded = 1
T = time = 2 years.
A = 9200 × (1 + 0.04/1)^(1×2)
A = 9200 × (1.04)²
A = 9200 × 1.0816
A = 9950.72
Dan would have £9950.72 after 2 years
