Question

Cynthia invests some money in a bank which pays

Answer 1

Answer = £6911

Compound interest of 5% means multiplying by 1.05 each year.

Let’s call the missing value x

To find x, we need to do:

(X) * 1.05 * 1.05 * 1.05 = 8000

So, to find x, divide 8000 by 1.05^3