Question

Compound interest

Al invests some money in a bank that pays 5% compound interest per year
She wants it to be worth £8000 at the end of 3 years
What is the smallest amount she could invest?

Answer 1

Answer: £6910.71

Explanation:

im not sure but i got this

Answer 2

£6886

Explanation:

P x e^r x t is the formula for compound interest

P x e^0.05 x 3 = 8000

P x 1.162 = 8000

P = 6885.66 = £6886 (round to the nearest pound)