Calculate the final amount If R3 200 is invested for 5 years at \( 7,25 \% \) p.a. compounded interest. Round off the answer to 2 decimal places

To calculate the final amount with compounded interest, you can use the formula: \( A = P(1 + r/n)^{nt} \) Where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount (the initial amount of money, R3,200 in this case). - \( r \) is the annual interest rate (decimal) (7.25% is 0.0725). - \( n \) is the number of times that interest is compounded per year (assuming once a year here, so \( n = 1 \)). - \( t \) is the time the money is invested for in years (5 years in this case). Plugging in the values: \( A = 3200(1 + 0.0725/1)^{1 * 5} \) \( A = 3200(1 + 0.0725)^{5} \) \( A = 3200(1.0725)^{5} \) Calculating \( (1.0725)^{5} \): \( A \approx 3200 \times 1.41878 = 4539.30 \) So, the final amount after 5 years is approximately R4,539.30.