Answer:
the Compound interest is £1,543.90
Explanation:
The computation of the compound interest is shown below:
As we know that
Compound interest is
Amount = Principal × (1 + rate of interest)^number of years
= £1,200 × (1 + 0.032)^8
= £1,200 × 1.286582318
= £1,543.90
hence, the Compound interest is £1,543.90
We simply applied the above formula so that the correct value could come
And, the same is to be considered