Question

Sarah invested £16 000 in a unit trust five years ago. The value of the unit trust has increased by 6% per annum for each of the last 3 years. Before this, the price had decreased by 4% per annum. Calculate the current price of the unit trust. Give your answer to the nearest whole number of pounds.​

Answer 1

17562 pounds

Explanation:

16000*96%=15360. 15360*96%=14745.6. 14745.6*106%=15630.336. 15630.336*106%=16568.1562. 16568.1562*106%=17562.2456. 17562.2456 approximately equals 17562 pounds.