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Please help me on this math question

Please help me on this math question-example-1

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Answer:

The formula for compound interest is: A = P(1 + r/n)^(nt)

Where:

A = the future value of the investment (the amount Alex has at the end of 7 years)

P = the initial investment (£4000)

r = the annual interest rate (x/100)

n = the number of times interest is compounded per year (let's assume it is compounded annually)

t = the number of years invested (7)

Plugging in the given values and solving for x:

5263.73 = 4000(1 + x/100)^7

So x = ((5263.73/4000)^(1/7))-1*100

x = 6.33% (approximately)

So, the interest rate is 6.33%.

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