Question

1.6 ACSF L5 SC Number: Simple and Compound Interest

Sandra plans to retire and can receive a lump sum of $26,376 from her pension provider.
2
She decides to invest of the lump sum for 8 years and use the rest for travelling.
3
Her bank account pays 4.99% compound interest per annum.
How much interest will Sandra receive from this investment after 8 years?
Round your answer to the nearest thousand dollars.
$

Answer 1

$12,000

Explanation:

`p(({1 + i})^(n) - 1)`

`26376( ({1 +.0499 })^(8) - 1) \\ = 12000`