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Construct the value of the original investment

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Question: A company is thinking of investing £15 000 in a savings fund. The fund runs for a ten-year period and is expected to generate a return each year of 8 per cent of the amount invested. All annual returns remain in the fund until the end of the period.

(a) Construct a table showing the value of the original investment each year over this period.

(b) Draw a graph representing this information.

(c) Convert these annual values to logarithms and construct a graph showing the logarithmic values. What comments can you make about this graph compared with the original?

Reference no: EM131754205

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