Amelia invests £875 into an savings account.
Amelia gets 4.75% per year compound interest.

Work out how much Amelia will have in the account after 8 years.

To calculate how much Amelia will have in her savings account after 8 years with 4.75% annual compound interest, we use the compound interest formula:

\[
A = P \left(1 + \frac{r}{100}\right)^t
\]

Where:
- \(A\) is the amount of money after interest.
- \(P\) is the principal (initial investment), which is £875.
- \(r\) is the annual interest rate, 4.75%.
- \(t\) is the number of years, 8 years.

Now we can plug in the values:

\[
A = 875 \left(1 + \frac{4.75}{100}\right)^8
\]

Let me calculate that for you.After 8 years, Amelia will have approximately £1268.35 in her savings account.

Would you like further explanation or details on any part of the process?

Here are 5 related questions you might explore:
1. What if the interest rate changes to 5%?
2. How would the amount change with simple interest instead of compound interest?
3. How much interest does Amelia earn in total after 8 years?
4. How long would it take for the investment to double at this rate?
5. What would the balance be after 10 years instead of 8?

**Tip:** Compound interest grows faster because interest is calculated on both the initial amount and previously earned interest.

Amelia invests £875 into a savings account. Amelia gets 4.75% per year compound interest. Work out how much Amelia will have in the account after 8 years.

Learn how to calculate compound interest for Amelia's £875 investment at a rate of 4.75% over 8 years. This detailed solution covers key concepts like the compound interest formula, exponential growth, and includes a step-by-step breakdown. Perfect for students in Grades 9-11.

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