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To solve this problem, we will use the compound interest formula:

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

Where:
- \(A\) is the amount of money accumulated after \(t\) years, including interest.
- \(P\) is the principal amount (the initial investment), in this case, £8000.
- \(r\) is the annual interest rate (2.8%).
- \(t\) is the time the money is invested for, in years (4 years).

Let’s calculate the value of Sally’s investment after 4 years. 

\[
A = 8000 \left(1 + \frac{2.8}{100}\right)^4
\] 

Now, let me calculate this.Sally's investment will grow to **£8934.34** after 4 years, with compound interest applied at 2.8% per year.

Would you like further details or have any questions?

Here are 5 related questions for deeper understanding:
1. How would the final amount change if the interest rate was 3.5% instead of 2.8%?
2. What happens to the total investment if Sally invests for 6 years instead of 4?
3. How would the total change if interest is compounded monthly instead of annually?
4. What if Sally withdraws £2000 after the second year? How will the new balance change?
5. Can you calculate the total interest earned after 4 years?

**Tip:** The frequency of compounding (monthly, yearly, etc.) has a significant effect on the final amount.

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.

Learn how to calculate the compound interest on £8000 invested for 4 years at an interest rate of 2.8%. This problem covers key financial mathematics concepts, including compound interest calculations. Suitable for Grades 9-12.

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