Answer:
£1,330.46
Step-by-step explanation:
Using the compound interest formula [tex]A = P(1+\frac{r}{n} )^{nt}[/tex]
A = amount compounded after n years
P = principal (amount invested)
r = rate (in %)
t = time (in years)
n = time used to compound the money
Given P = £1200., r = 3.5%, t = 3years, n = 1 year(compounded annually)
[tex]A = 1200(1+0.035)^{3}\\ A = 1200(1.035)^{3}\\ A = 1200* 1.108717875\\A = 1,330.46[/tex]
Value of Charlie's investment after 3 years is £1,330.46
