1. **Problem statement:** Oscar invests 2000 pounds into a savings account with a compound interest rate of 3.5% per year. We need to find:
a) The total amount in the account after 9 years.
b) The total interest earned after 9 years.
2. **Formula for compound interest:**
$$A = P \left(1 + \frac{r}{100}\right)^t$$
where:
- $A$ is the amount after $t$ years,
- $P$ is the principal (initial amount),
- $r$ is the annual interest rate (in %),
- $t$ is the time in years.
3. **Calculate the amount after 9 years:**
Given $P = 2000$, $r = 3.5$, and $t = 9$,
$$A = 2000 \left(1 + \frac{3.5}{100}\right)^9 = 2000 \left(1 + 0.035\right)^9 = 2000 \times 1.035^9$$
Calculate $1.035^9$:
$$1.035^9 \approx 1.372786$$
So,
$$A \approx 2000 \times 1.372786 = 2745.572$$
Rounded to the nearest penny:
$$A = 2745.57$$
4. **Calculate the interest earned:**
Interest $I = A - P$
$$I = 2745.57 - 2000 = 745.57$$
5. **Final answers:**
a) Oscar will have **2745.57** pounds in the account after 9 years.
b) The interest earned after 9 years is **745.57** pounds.
Compound Interest 83948E
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