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Cynthia invests some money in a bank which pays
5% compound interest per year.
She wants it to be worth over £8000 at the end of 3 years.
What is the smallest amount, to the nearest pound, she can invest?

Respuesta :

Answer: £6910.7

Step-by-step explanation:

Given

Rate [tex]R=5\ \%[/tex]

Amount [tex]A=[/tex]£[tex]8000[/tex]

Time [tex]T=3\ years[/tex]

In compound interest, the Amount is given by

[tex]A=P[1+\frac{R}{100}]^T[/tex]

[tex]8000=P[1+\frac{5}{100}]^3[/tex]

[tex]P=\dfrac{8000}{1.1576}[/tex]

[tex]P=[/tex]£[tex]6910.7[/tex]

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