Question

Sally 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. GUYS PLLS SAVE MEEE

Answer 1

The formula for this is:

Initial amount x multiplier^years

So that is £8000 x 1.028^4 = £8934.33938

That is £8934.34