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**Problem Statement:**

Rupert puts £3,600 into a savings account. At the end of each year, the bank adds 5% interest to the amount in his account. We need to find out how much money he will have at the end of year two.

**Steps to Solve:**

1. **Calculate the balance at the end of year one:**
   - Initial balance: £3,600
   - Interest for the first year: \( 3600 \times 0.05 = 180 \) 
   - Balance at the end of year one: \( 3600 + 180 = 3780 \)

2. **Calculate the balance at the end of year two:**
   - New balance: £3,780
   - Interest for the second year: \( 3780 \times 0.05 = 189 \)
   - Balance at the end of year two: \( 3780 + 189 = 3969 \)

**Answer:**

- The amount of money Rupert will have at the end of year two is **£3,969**.

Would you like more details on any part of the calculation, or do you have any other questions?

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Here are some related questions:

1. How would the total amount change if the interest rate was 10% instead of 5%?
2. What would be the total balance after three years?
3. How much interest is earned in the second year compared to the first year?
4. How would the outcome differ if the interest were compounded monthly instead of annually?
5. What is the formula for compound interest and how can it be used to solve similar problems?

**Tip:** When calculating interest over multiple years, using a compound interest formula can simplify the process, especially for more than two years.

Learn how to calculate compound interest for Rupert's savings with a step-by-step solution. This problem involves applying the compound interest formula to determine the amount of money Rupert will have in his savings account after two years. Suitable for students in Grades 7-9.

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