Answer:
see explanation
Step-by-step explanation:
The amount (A) is calculated as
A = P [tex](1+\frac{r}{n}) ^{nt}[/tex]
P is the principal, r the interest rate
n the number of times per year that compounding happens
t the number of years
Here P = 200000, r = 1.6% = 0.016, n = 1 and t = 4
A = 200000[tex](1+\frac{0.016}{1}) ^{4}[/tex]
= 200000[tex](1.016)^{4}[/tex]
= 213110.4899
Thus
Interest obtained = £213110.4899 - £200000 = £13110.4899
Interest ≈ £13110 ( to the nearest £ )
