Given parameters:
Principal = £1300
Interest rate = 5%
Duration = 2yrs
Unknown:
Total amount of Dan's principal = ?
To solve this problem, we apply the equation below:
Total investment worth = Principal + interest
Interest = [tex]\frac{PRT}{100}[/tex]
where P is the principal
R is the rate
T is the time
Now, input the parameters;
Total investment worth = £1300 + £ [tex]\frac{1300 x 5 x 2}{100}[/tex]
= £1300 + £130
= £1430
The amount after two years is £1430
