Calculate the final amount if R3200 is invested for 5 years at \( 7,25 \% \) p.a compound interest. Round off the answer to 2 decimal places.

To calculate the final amount with compound interest, you can use the formula: \[ A = P(1 + r)^n \] Where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount (the initial amount of money). - \( r \) is the annual interest rate (decimal). - \( n \) is the number of years the money is invested or borrowed. For your investment of R3200 at a rate of 7.25% per annum for 5 years: 1. Convert the interest rate from a percentage to a decimal: \( 7.25\% = 0.0725 \). 2. Plug in the values: \[ A = 3200(1 + 0.0725)^5 \] \[ A = 3200(1.0725)^5 \] Calculating \( (1.0725)^5 \): \[ (1.0725)^5 \approx 1.4190 \] Now calculate: \[ A \approx 3200 \times 1.4190 \approx 4530.40 \] So, the final amount after 5 years would be approximately R4530.40.