Which one of the following statements is correct? At the end of year 5, £3000 invested now at time 0, at an annual interest rate of 12% will be worth (to the nearest £):

Question

Quizplus · Accepted Answer

Using the compound interest formula, we have:

A = P(1+r)^t 
where A is the final amount, P is the initial investment, r is the annual interest rate as a decimal, and t is the number of years.

Plugging in the numbers, we get: 
A = 3000(1 + 0.12)^5 
A = 3000(1.7623) 
A = £5286.90

To the nearest £, this is £5287. Therefore, the correct answer is C.

Which One of the Following Statements Is Correct? at the End