Respuesta :
Because the account PAYS compound interest per year it's called depreciation.
So you do 100-3.4 = 96.6, the divide by 100 = 0.966
Then you do 0.966^3 x £6000 = £5408.6
So you do 100-3.4 = 96.6, the divide by 100 = 0.966
Then you do 0.966^3 x £6000 = £5408.6
Answer:
The value of the given investment after 3 years will be £6633.04
Step-by-step explanation:
Principal value = £6000
Rate of interest = 3.4%
n = 1 ( Number of times the interest is compounded annually)
Time = 3 years
Now, the interest is compounded annually. So,
[tex]\text{Amount = }Principal\times (1+\frac{Rate}{n\times 100})^{n\times Time}\\\\\implies Amount = 6000\times(1+\frac{3.4}{100\times 1})^{1\times 3}\\\\\implies Amount = 6000\times (1.034)^{3}\\\\\implies Amount=\£6633.04[/tex]
Therefore, The value of the given investment after 3 years will be £6633.04
