Naoby invests £6000 for 5 years. The investment gets compound interest of x% per annum. At the end of 5 years the investment is worth £8029.35 Work out the value of x.

The answer to the question can take a backwards approach. i.e. in order for you to make £8029.35 in 5 years from £6000, what does the yearly interest need to be.Since the interest is compounded, the yearly interest rate 'x' must be the same.The formula would be:8029.35 = 6000 * (1 + x)^5=> 8029.35/6000 = (1 + x)^55th root of 8029.35/6000 = (1 + x)=> x = 1 - 5th root of 8029.35/6000=> x = 0.059999 = 6.0%

Answered by Arlind L. Maths tutor

18541 Views

See similar Maths GCSE tutors

Related Maths GCSE answers

All answers ▸

A 4kg bag of rice costs £3.20 and a 6kg bag of rice costs £5.80. Which bag of rice is the best value for money? Show all your working.


y = 4x^2 + 20x + 11 is a curve. Find the minimum point of the curve.


Solve these simultaneous equations. 5x + 2y = 20 and x + 4y = 13.


If f(x)=(x-2)^2, determine the gradient of the tangent to the curve f(x) at x=-2.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences