Answer:
Maximum amount = $10,108.43
Explanation:
<em>The maximum amount that can be withdrawn from the account would be the future value of the lump sum of $8,800 invested at 20% p.a.</em>
The future value under compound interest is computed as follows:
FV = P ×(1 +r )^(n)
FV - future value P- principal deposit, rate per period , n- number of period
The future value
PV- 8,800, r- 20%, n- number of years
= 8,800 × (1+0.2)^(7)= $10,108.43
Future value = $10,108.43