Rohan invested £3000 for 4 years in a savings account. He was paid 2.5% per annum compund interest. How much did Rohan have in his savings account for 4 years?

Rohan will have £3311 in his savings account for 4 years

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 3000

r = 2.5% = 2.5/100 = 0.025

n = 1 because it was compounded once in a year.

t = 4 years

Therefore,.

A = 3000(1+0.025/1)^1 × 4

A = 3000(1.025)^4

A = £3311

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