Final answer:
To calculate the future value of an investment, we need the initial investment amount, interest rate, and the compounding frequency, none of which were provided for Sadiq's investment. Thus, it's not possible to calculate the exact value of Sadiq's investment after 3 years without more information.
Step-by-step explanation:
The question requires calculating the value of Sadiq's investment at the end of a three-year period, but the initial investment amount for Sadiq is not provided. To calculate the end value of an investment, we typically use the compound interest formula, which is A = P(1 + r/n)^(nt), where 'A' is the amount of money accumulated after n years, including interest, 'P' is the principal amount (the initial sum of money), 'r' is the annual interest rate (decimal), 'n' is the number of times that interest is compounded per year, and 't' is the time in years the money is invested for.
Since we do not have the specific details for Sadiq's initial investment amount, interest rate, or the compounding frequency, we cannot calculate the exact value of his investment. However, using the compound interest concept can demonstrate the power of investing early and the potential growth of investments over time, as seen in the example where $3,000 invested at a 7% annual return grows to $44,923 after 40 years.
To calculate the value of Sadiq's investment at the end of 3 years, apply the compound interest formula. If Louise's investment of £x grew to £344,605 in 3 years, we can determine the interest rate using the equation:
£x * (1 + r)^3 = £344,605
Rearranging the equation, we have:
(1 + r)^3 = £344,605 / £x
To find the value of Sadiq's investment, substitute the value of £x and solve for Sadiq's investment:
£x * (1 + r)^3 = £Sadiq
Since we don't have the value of £x, we cannot provide an exact answer.