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pentagon [3]
3 years ago
15

Number of comments got maxed out so here's another post.

Mathematics
1 answer:
suter [353]3 years ago
7 0
That’s cool. i need p01nts so imma comment
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ian invested an amount of money at 3% per annum compound interest. At the end of 2 years the value of the investment was £2652.2
Scorpion4ik [409]

Answer:

the amount of money Ian invested is P =  £2,500

Step-by-step explanation:

The standard formula for compound interest is given as;

A = P(1+r/n)^{nt} \\P = \frac{A}{(1+r/n)^{nt}} ...........1\\

Where;

A = final amount/value

P = initial amount/value (principal)

r = rate yearly

n = number of times compounded yearly.

t = time of investment in years

For this case, Given that;

A = £2652.25

t = 2 years

n = 1 (semiannually)

r = 3% = 0.03

substituting the given values into equation 1;

P = \frac{A}{(1+r/n)^{nt}} ...........1\\P = \frac{2652.25}{(1+0.03)^{2}} \\P = \frac{2652.25}{(1.03)^{2}} \\

P =  £2,500

the amount of money Ian invested is P =  £2,500

8 0
3 years ago
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