Answer:
a. £1,350
b. 4%
Step-by-step explanation:
a. The formula for the calculation of the value of an investment given an interest rate and a number of periods is:
Future value = Principal * ( 1 + rate) ^ no. of time periods
The given formula above is also in this form:
v = Future value
Principal = £1,350
Toni therefore invested £1,350
b. As already mentioned, the formula given is in the same form as the future value formula:
1.04 = 1 + rate
Rate = 1.04 - 1
Rate = 0.04
Rate = 4%
