Compound interestmediumFree question
Compound interest Numerical Reasoning Question
£6,000 at 4% compound interest for 3 years. What is it worth? (nearest £)
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Compound interest: final value = principal × (1 + rate)ⁿ for n years. The correct answer is £6,749. Traps to avoid: £6,490 comes from the "n off" error; £749 comes from the "interest not total" error; £7,019 comes from the "n off" error; £6,720 comes from the "used simple" error.
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