What is the value of an investment of £4500 with compound interest of 1.3% after six years?

We solve this by multiplying the starting value, £4500 , by 1 + {the interest rate expressed as a decimal} , or in this case, 1 + 0.013 . This gives us £4500 x 1.0136 and when we type this into our calculator, we get £4,862.607168... but when dealing with money we only ever work to two decimal places, making this £4862.61

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Answered by Mark C. Maths tutor

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