Edexcel C2 — Question 3

Exam BoardEdexcel
ModuleC2 (Core Mathematics 2)
TopicExponential Functions

3. Every \(\pounds 1\) of money invested in a savings scheme continuously gains interest at a rate of \(4 \%\) per year. Hence, after \(x\) years, the total value of an initial \(\pounds 1\) investment is \(\pounds y\), where $$y = 1.04 ^ { x }$$
  1. Sketch the graph of \(y = 1.04 ^ { x } , x \geq 0\).
  2. Calculate, to the nearest \(\pounds\), the total value of an initial \(\pounds 800\) investment after 10 years.
  3. Use logarithms to find the number of years it takes to double the total value of any initial investment.