A Cynthia invests some money in a bank which pays
5% compound interest per year.
She wants it to be worth over £8000 at the end of 3 years
What is the smallest amount, to the nearest pound, she can invest?

Intital investment= £6,911.57

Step-by-step explanation:

Giving the following information:

Future Value (FV)= £8,001

Number of periods (n)= 3 years

Interest rate (i)= 5% = 0.05 compounded annually

To calculate the initial investment (PV) needed to reach £8,001 (over £8,000) in 3 years, we need to use the following formula:

PV= FV / (1+i)^n

PV= 8,001 / (1.05^3)

PV= £6,911.57

an advantage of the standard deviation is that it increases as the dispersion of the data increases. e. the interquartile range is preferred when the data are not skewed or no have outliers. an advantage of the standard deviation is that it uses all the observations in its computation.