round off final answer to 2 decimals
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We don't know how much she invested, but we can work out how much the investment would grow in 7 years if 8.2% annual compound interest applies.

8.2%=0.082 as a fraction. Growth=1.0827=1.73616 approx. This is because each year the amount increases by 8.2% of what has accumulated in the previous year.

After the first year 1000 would grow to 1082.00 by adding 8.2% of 1000=82 to 1000.

After 2 years it would grow by a further 8.2% that is, by 88.72 (approx) making the new balance 1170.72.

3rd year: 1266.72; 4th year: 1370.59; 5th year: 1482.98; 6th year: 1604.59; 7th year: 1736.16. Each year the amount grows by 8.2%.

If she invested 1000 it would grow to about 1736.16 in 7 years.

If she invested 500 it would grow to half of this=868.08.

by Top Rated User (1.2m points)

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