Final answer:
Beth originally invested approximately £15,356.14 in the bank account.
Step-by-step explanation:
To solve this problem, we need to use the compound interest formula. The formula is given by:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount
- P is the principal (initial investment)
- r is the annual interest rate (as a decimal)
- n is the number of times that interest is compounded per year
- t is the number of years
In this case, Beth had £17,466 after 4 years, so we can plug in the values into the formula and solve for the principal:
17,466 = P(1 + 0.025/1)^(1*4)
17,466 = P(1.025)^4
Divide both sides of the equation by (1.025)^4:
P = 17,466 / (1.025)^4
Using a calculator, we get:
P ≈ £15,356.14