Sarah invested £12000 into a unit trust 5 years ago. The value of the unit trust has increased by 7% per annum for each of the last three years. Before this the, the price decreased by 3% each annum. Calculate the current price of the unit trust.

Answer 1

amount after first 2 years
= 12000(1.03)^2 = 12,730.80
amount of that after 3 years at 7%
= 12730.80(1.07)^3 = 15,595.78

Answer 2

This is bs