Question

Harry invests £8000 in a savings account.

the account pays 2.8% compound interest per year
work out the value of her investment after 4 years
give your answer to the nearest penny

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\pounds 8000\\ r=rate\to 2.8\%\to (2.8)/(100)\dotfill &0.028\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{per year, thus once} \end{array}\dotfill &1\\ t=years\dotfill &4 \end{cases} \\\\\\ A = 8000\left(1+(0.028)/(1)\right)^(1\cdot 4)\implies A=8000(1.028)^4 \implies A \approx 8934.34`