Question

Toni invests money into an account which pays a fixed rate of compound interest each year. The total value, £V, of her investment after t years is given by the formula

Answer 1

a. 1350

b. 4%

Explanation:

here is the complete question :

Toni invests money into an account which pays a fixed rate of compound interest each year. The total value, £V, of her investment after t years is given by the formula:

V = 1350 x 1.04^t

Answer questions a & b

a - How much money did Toni invest in pounds

b - What rate of compound interest is paid each year

the formula for calculating compound interest is given by :

V = P (1 + r)^t

P = Present value -= amount invested = 1350

R = interest rate = 4%

N = number of years = t

i hope my answer helps you