Question

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

Answer 1

Answer:

£6956.52

Step-by-step explanation:

Given data

R=5%

A= £8000

T= 3 years

P=???

The compound interest is

A=P(1+r)^t

8000= P(1+0.05)^3

8000= P(1.05)^3

8000= P1.15

P= 8000/1.15

P=6956.52

Hence she needs to invest £6956.52