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Alex invests £4000 for 7 years.
His investment pays compound interest of x% per annum.
At the end of the 7 years Alex’s investment is worth £5263.73
Work out the value of x

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Luv2Teach

Answer:

Step-by-step explanation:

Use the equation

[tex]A(t)=P(1+r)^t[/tex] and fill it in using the info we were given:

[tex]5263.73=4000(1+r)^7[/tex] Begin by dividing both sides by 4000 to get

[tex]1.3159325=(1+r)^7[/tex] and take the 7th root of both sides to "undo" that 7th power on the right. Doing that gives us

1.04 = 1 + r so

.04 = r and the interest rate is 4%

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