Question

Alex invests £4000 for 7 years.

Answer 1

Answer:

Step-by-step explanation:

Use the equation

$A(t)=P(1+r)^t$ and fill it in using the info we were given:

$5263.73=4000(1+r)^7$ Begin by dividing both sides by 4000 to get

$1.3159325=(1+r)^7$ and take the 7th root of both sides to "undo" that 7th power on the right. Doing that gives us

1.04 = 1 + r so

.04 = r and the interest rate is 4%