ian invested an amount of money at 3% per annum compound interest. At the end of 2 years the value of the investment was £2652.25 Work out the amount of money Ian invested.

the amount of money Ian invested is P =  £2,500

Step-by-step explanation:

The standard formula for compound interest is given as;

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;

P =  £2,500

the amount of money Ian invested is P =  £2,500