Answer:
£6,910.70
Step-by-step explanation:
The computation of the amount invested is given below:
As we know that
Amount = Principal × (1 + rate of interest)^number of years
£8000 = Principal × (1 + 0.05)^3
£8000 = Principal × 1.05^3
£8000 = Principal × 1.157625
So, the principal amount is
= £8000 ÷ 1.157625
= £6,910.70
