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Sally invests £8000 in a savings account. the account pays 2.8% compound interest per year. What is the value of her investment after 4 years?

Respuesta :

Amount after 4 years = 8000(1 + 0.028)^4 =  £8934.34

Answer with Step-by-step explanation:

The total amount is calculated by:

[tex]P(1+r)^n[/tex]

where P is the amount invested

r is the rate of interest

and n is the time.

Here, P=£8000

r=0.028

and n=4

Value of investment after 4 years=

[tex]8000(1+0.028)^4\\\\=8000\times 1.028^4[/tex]

=£8934.34

Hence, Value of investment is:

£8934.34

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