Compound interest question :
Elle invests some money into a bank which pays 5% compound interest per year. She wants it to be worth £8000 at the end of 3 years. What is the smallest amount, to the nearest £, that she can invest?
The formula is A=p (1+r)^t A future value 8000 P present value? R interest rate 0.05 T time 3years Solve the formula for p P=A÷(1+r)^t P=8,000÷(1+0.05)^(3) P=6,910.70
