Answer:
the amount of money Ian invested is P = £2,500
Step-by-step explanation:
The standard formula for compound interest is given as;
[tex]A = P(1+r/n)^{nt} \\P = \frac{A}{(1+r/n)^{nt}} ...........1\\[/tex]
Where;
A = final amount/value
P = initial amount/value (principal)
r = rate yearly
n = number of times compounded yearly.
t = time of investment in years
For this case, Given that;
A = £2652.25
t = 2 years
n = 1 (semiannually)
r = 3% = 0.03
substituting the given values into equation 1;
[tex]P = \frac{A}{(1+r/n)^{nt}} ...........1\\P = \frac{2652.25}{(1+0.03)^{2}} \\P = \frac{2652.25}{(1.03)^{2}} \\[/tex]
P = £2,500
the amount of money Ian invested is P = £2,500
