\( € 2000 \) is invested for 3 years at \( 4 \% \) per year at compound interest. (a) Work out the amount of the investment after 1 year.

To find the amount of the investment after 1 year with compound interest, you can use the formula: \[ A = P(1 + r)^n \] Where: - \( P \) is the principal amount (initial investment), which is €2000, - \( r \) is the annual interest rate (expressed as a decimal), so \( 4\% = 0.04 \), - \( n \) is the number of years the money is invested for, which is 1 year. Plugging in the values: \[ A = 2000(1 + 0.04)^1 \] \[ A = 2000(1.04) \] \[ A = 2000 \times 1.04 = 2080 \] After 1 year, the amount of the investment will be €2080.