Mathematics for IGCSE & O level - Percentages (Section 6 - No. 7)
Andrew invested $3500 in a six-year bond that paid 5% compound interest for the first three years and 7.5% compound interest for the next three years. What is the amount in the bond, to the nearest cent after three years?
$4044.00
$4043.63
$4000
$4043
Explication
A = P(1 + r/100)^n = 3500 * (1 + 5/100)^3= 4043.63