Dan invests £11000 into a savings account. The bank gives 3.9% compound interest for the first 3 years and 4.5% thereafter. How much will Dan have after 7 years to the nearest pound?

The initial amount of the money is £11,000 and the interest is 3.9% per year for first 3 years and then 4.5% after that. If Dan invests it for 7 years, that means the interest would be 3 years of 3.9% and 4 years of 4.5%.

The calculation would be:

total money = initial amount * interestrate1 * interest 2

total money = £11000 * (100%+3.9%) ^3 * (100%+4.5%) ^4

total money = £11000 * (103.9%) ^3 * (104.5%) ^4

total money = £11000 * 1.121622319 * 1.1925186

total money = £14,713.11