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22 November, 21:23

Sam invests £5000 at 2.8% per annum compound interest for 4 years. work out the value of sams investment at the end of 4 years.

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  1. 22 November, 21:51
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    The future amount of current investment is calculated through the equation,

    F = P x (1 + r) ^n

    Where F and P are the future and present amount, respectively, r is the rate, and n is number of years. Substituting,

    F = (5000) x (1 + 0.028) ^4 = 5583.96

    Therefore, the future worth of the money is £5583.96.
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