Answer:
Original value of investment = £500 (Approx.)
Step-by-step explanation:
Given:
Rate per year = 4%
Number of year = 3 years
Value of investment after 3 year = £562.43
Find:
Original value of investment
Computation:
A = P[1+r]ⁿ
562.43 = P[1+4%]³
562.43 = P[1+0.04]³
562.43 = P[1.04]³
562.43 = P[1.1248]
Original value of investment = 562.43 / 1.1248
Original value of investment = 500.026
Original value of investment = £500 (Approx.)
