Amir invests £770 into an account that pays 3.25% compound interest per year.

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

To calculate the amount of money Amir will have in the account after 8 years with compound interest, we can use the formula for compound interest:

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

Where:
- \(A\) is the amount in the account after \(t\) years.
- \(P\) is the principal amount (initial investment).
- \(r\) is the annual interest rate.
- \(t\) is the number of years.

Given:
- \(P = 770\)
- \(r = 3.25\%\)
- \(t = 8\)

Substituting the values into the formula:

\[
A = 770 \left(1 + \frac{3.25}{100}\right)^8 = 770 \left(1.0325\right)^8
\]

Now, let's calculate the result:

\[
A = 770 \times (1.0325)^8
\]

First, we'll compute \( (1.0325)^8 \).After 8 years, Amir will have approximately **£994.51** in the account.

Would you like more details or have any questions about this calculation?

Here are 5 related questions to consider:
1. What would the total be after 10 years with the same interest rate?
2. How much interest will Amir earn after 8 years?
3. What if the interest rate was 4%? How much would the total be?
4. What would be the total if Amir invested £1,000 instead of £770 for 8 years?
5. How does compound interest differ from simple interest in this case?

**Tip**: Compound interest grows your investment faster than simple interest because it applies interest to both the initial principal and accumulated interest.

Amir invests £770 into an account that pays 3.25% compound interest per year. Work out how much Amir will have in the account after 8 years.

Learn how to calculate the final amount for an investment of £770 with a 3.25% compound interest rate over 8 years. This problem demonstrates key concepts in exponential growth and percentage calculations, using the compound interest formula. Suitable for students in Grades 9-12.

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