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nasty-shy [4]
3 years ago
8

Cynthia invests some money in a bank which pays 5% compound interest per year.

Mathematics
1 answer:
shtirl [24]3 years ago
6 0

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

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