Answer:
£10386.34
Step-by-step explanation:
The amount in an account for a principal P saved at compound interest for a period of n years at an annual rate of r% is calculated using the formula:
[tex]A(n)=P(1+r)^n[/tex]
In this case:
Principal, P=£9500
r=1.8%=0.018
n=5 years
Therefore:
[tex]A(5)=9500(1+0.018)^5\\=9500(1.018)^5\\=\£10386.34[/tex]
At the end of 5 years, Annie will have £10386.34
