Richard sold his car for

MATHEMATICS · Multi-part · GCSE · Mathematics · Ratio and Proportion · Ratio and Proportion

Problem

7500

. He invested the money in an account paying

3.7\%

p.a. interest compounded quarterly for

8

years. Inflation averaged

3.1\%

per year over this period. (a) Find the future value of Richard's investment. (b) Find the real value of Richard's investment.