Answer:
We can use the compound interest formula to find the total amount of interest Claire will get at the end of four years:
A = P(1 + r/n)^(nt)
Where:
A = the total amount of money in the account at the end of the four years
P = the principal amount (the initial investment)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
In this case, we have:
P = £200000
r = 0.016 (1.6% expressed as a decimal)
n = 1 (compounded annually)
t = 4
So, the formula becomes:
A = £200000(1 + 0.016/1)^(1*4)
= £200000(1.016)^4
= £219,463.18
To find the total amount of interest Claire will get, we need to subtract the principal amount from the total amount of money in the account at the end of four years:
Total interest = £219,463.18 - £200,000
= £19,463.18
Therefore, Claire will get £19,463.18 in total interest at the end of four years.