Cynthia invests some money in a bank which

Answered question

2022-04-24

Cynthia invests some money in a bank which pays 5% compound interest per year. She wants it to be worth over £8000 at the end of 3 years. What is the smallest amount, to the nearest pound, she can invest

 

Answer & Explanation

star233

star233

Skilled2022-06-20Added 403 answers

Let ,Cynthia invested $x

Rate = 5%per year

time = 3 year

Amount (A)=P(1+r100)t

8000=x(1+5100)3

8000=x(2120)3

x=8000×80009261

x=6910.7

Therefore she can invest =$6910.7 =5322.14 pound

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