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 & ba- How much money did Toni invest in poundsb- What rate of compound interest is paid each year

Accepted Solution

Ok, this is a simple compound interest problem.
For A) your answer is 1350. The initial investment, P, is represented by a whole number.
For B) The compound interest is paid at 4%. Look at 1.04. Remember the formula, and subtract the 1 to find the interest rate