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soldier1979 [14.2K]
3 years ago
5

A sum is invested in a building society at 4% interest per annum and after 3 years

Mathematics
1 answer:
lesantik [10]3 years ago
7 0

Answer:

Original value of investment = £500 (Approx.)

Step-by-step explanation:

Given:

Rate per year = 4%

Number of year = 3 years

Value of investment after 3 year = £562.43

Find:

Original value of investment

Computation:

A = P[1+r]ⁿ

562.43 = P[1+4%]³

562.43 = P[1+0.04]³

562.43 = P[1.04]³

562.43 = P[1.1248]

Original value of investment = 562.43 / 1.1248

Original value of investment = 500.026

Original value of investment = £500 (Approx.)

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