.96x = 354
x = 354/.96 = 368.75
2. Assuming that the 4% is compounded annually and not simple interest, in 4 years Burt's future value is:
fv = pv * (1 + r) ^ t
fv = 4000 * (1 + 0.04) ^ 4 = 4679.43424 or 4679.43 rounded to two decimals so he made 679.43 in interest.
If instead, it is actually simple interest, then Burt makes 0.04 * 4000 or 160/yr or 640 in interest in 4 years.
2
If you are then please could you help me with these questions below?
1) In 2006 Nick raised ￡354 for charity. This was 4% less than he raised in 2005. How much did he raise in 2005?
2)Burt invests ￡4000 in a savings account. If the interest rate is 4 % per annum how much interest will he have after 4 years?
