Compound And Simple Intrest.

Question 1

Example question-
Raj invested 4500 for 3 years in a savings account.
He was paid 4% compound interest per year.
How much does raj have in his account after 3 years.

Answer 1

4500 x (1.04)3 
( starting amount) (increase by 4%) (3 years)

Question 2

Example question:
In a sale, normal prices are reduced by 12%.
The sale price of a digital camera is £132.88
Work out the normal price.

Answer 2

1- 12/100= 0.88

132.88 divided by 0.88= 151.

Question 3

What is the formula for compound interest?

Answer 3

Amount after (n) years= starting amount x multiplier to the power of n.