The question is incomplete. The complete question is :
George, Matthew and Isabelle invest money in a savings account, which pays compound interest of 3% p.a.
a). George invested £ 4800. Work out the total value of his investment after 5 years.
Solution :
It is given that :
George invested amount of, P = £ 4800
Time of investment, t = 5 years
Rate of interest, r = 3 % p. a.
The total value will be :
[tex]$A=P(1+\frac{r}{100})^t$[/tex]
[tex]$A=4800(1+\frac{3}{100})^5$[/tex]
[tex]$A=4800\times (1.03)^5$[/tex]
[tex]A = 4800 \times 1.1592[/tex]
= 5564.16
Therefore the total value after 5 years = £ 5564.16
