Question

sam invests £5000 at 2.8% per annum compound interest for 4 years. work out the value of sams investment at the end of 4 years.

Answer 1

The future amount of current investment is calculated through the equation,

F = P x (1 + r)^n
Where F and P are the future and present amount, respectively, r is the rate, and n is number of years. Substituting,
F = (5000) x (1 + 0.028)^4 = 5583.96
Therefore, the future worth of the money is £5583.96.