Bill invests £500 on the 1st Jan 2004 at a compound interest of R% per annum. The value, £V, of this investment after n years is given by the formula V=500x(1.045)^n
The 2 does not distribute through like you have shown
$\displaystyle (a+b)^2 = (a+b)(a+b) \neq (2a+2b)$
I found your r by inspection as it was in the same form as something I was familiar with. To do what you have attempted you must have a value for A as well.
So I need a value for A? They just say that the value is V.
I'll post the actual question when I find it, although I think it is unnecessary as I have posted all the core parts that I need answering, I am sure I have not missed something out
So I need a value for A? They just say that the value is V.
I'll post the actual question when I find it, although I think it is unnecessary as I have posted all the core parts that I need answering, I am sure I have not missed something out
A = V in your case
You're expected to know the compound interest formula given in post 2