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GB-14-04-001 · Compound growth

£1820 is invested at 4.4% compound interest per year. No money is added or withdrawn. Work out its value after 2 years. Give your answer to the nearest penny.

Compound Percentages (Growth) Booklet p. 52
Method
Use Original Amount × ((100 + %) / 100)^Time = New Amount
Worked Example (GB-14-04-001)
Booklet p. 51–52: Original Amount×(100±%100)Time=New Amount\mathbf{\text{Original Amount} \times \left(\frac{100 \pm \%}{100}\right)^{\text{Time}} = \text{New Amount}}
1) Use growth multiplier 1.0440.
2) 1820(1.0440)21820(1.0440)^2
3) £1983.68
£1983.68