# Simon invested £20 000 at a compound interest rate of 2.5% per annum. At the end of n years the investment has a value

Simon invested £20 000 at a compound interest rate of 2.5% per annum. At the end of n years the investment has a value of £V. Work out the value of V when n=2

## This Post Has 10 Comments

1. cupcake20019peehui says:

E⁣⁣⁣xplanation i⁣⁣⁣s i⁣⁣⁣n a f⁣⁣⁣ile

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Given,

$a = 2 \\ b = 3$

So,

$N = 4a + 6b \\ N = 4(2) + 6(3) \\ N = 4 × 2 + 6 × 3 \\ N = 8 + 18 \\ N = 26$

⎇ The value of N is 26.

3. Prettygirlyaya says:

M = 20

Step-by-step explanation:

Given that M is directly proportional to r³ then the equation relating them is

M = kr³ ← k is the constant of proportion

To find k use the condition when r = 4, M = 160, that is

160 = k × 4³ = 64k (divide both sides by 64 )

2.5 = k

M = 2.5r³ ← equation of proportion

When r = 2, then

M = 2.5 × 2³ = 2.5 × 8 = 20

1) When r = 2, M = 20.

2) When M  = 540, r = 6.

Step-by-step explanation:

M is a directly proportional to r cubed

This means that the equation for M has the following format:

$M = ar^3$

In which a is a multiplier.

When r=4 M=160.

We use this to find a. So

$M = ar^3$

$160 = a(4^3)$

$64a = 160$

$a = \frac{160}{64}$

$a = 2.5$

So

$M = 2.5r^3$

1) work out the value of M when r=2

$M = 2.5*2^3 = 2.5*8 = 20$

When r = 2, M = 20.

2) work out the value of r when M=540

$M = 2.5r^3$

$540 = 2.5r^3$

$r^3 = \frac{540}{2.5}$

$r^3 = 216$

$r = \sqrt[3]{216}$

$r = 6$

When M  = 540, r = 6.

5. mariahcid904 says:

$P = 4d - 3 \\ P = 4 *2 - 3 \\ P = 8 - 3 \\ P = 5.$

6. lkhushi says:

A = $21,024.33 A = P + I where P (principal) =$ 20,000.00

I (interest) = $1,024.33 Step-by-step explanation: First, convert R percent to r a decimal r = R/100 r = 2.5%/100 r = 0.025 per year, Then, solve our equation for A A = P(1 + r/n)nt A = 20,000.00(1 + 0.002083333/12)(12)(2) A =$ 21,024.33

principal plus interest,

from compound interest on an original principal of

$20,000.00 at a rate of 2.5% per year compounded 12 times per year over 2 years is$ 21,024.33.

m

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Step-by-step explanation:

8. meijorjay94p2u2zy says:

M<varies>r³

M=kr³(k= constant)

when M=160,r=4

160=k(4)³

160=64k

k=2.5

therefore,M=2.5r³

when r=2

M=2.5r³

M=2.5(2)³

M=2.5(8)

M=20

9. Amyra2003 says:

A. M= 20

B. r = 6

Step-by-step explanation:

M=kr³

where k is the constant

M= 160 , r 4

160= k(4)³

k = 160/4³= 2.5

A. when r= 2 , M= kr³

M= 2.5(2)³ = 20

B. when M= 540, find r

M= kr³

r³ = M/k

r³ = 540/2.5

r³= 216

r = 6

10. xxkeyxx51 says:

26

Step-by-step explanation:

N = 4a + 6b ​

Let a=2 and b=3

N = 4*2 + 6*3

Multiply

N = 8+18