Question

1. Calculate the final amount if you invest? a) RZ swo ai \( 8 \% \) compounded interest p.a for 2 years b) 275000 at \( 7.5 \% \) p.a compounded annually for 3 years

Ask by Harmon Mcguire. in South Africa
Feb 19,2025

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The final amounts are: - a) Approximately 1.1664 RZ after 2 years at 8% interest. - b) 341,631.64 after 3 years at 7.5% interest.

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To calculate the final amount from an investment using compound interest, the formula is: \[ A = P(1 + r/n)^{nt} \] where \( A \) is the amount of money accumulated after n years, including interest. a) For \( RZ swo ai \) (let's assume \( P = RZ swo ai \)), with an interest rate of \( 8 \% \) compounded annually for \( 2 \) years: \[ A = P(1 + 0.08)^2 = P(1.1664) \] Thus, the final amount can be calculated once the principal \( P \) is given. b) For \( 275000 \) at \( 7.5 \% \) compounded annually for \( 3 \) years: \[ A = 275000(1 + 0.075)^3 = 275000(1.242422) \approx 341,673.05 \] So, the final amount would be approximately \( 341,673.05 \). Happy investing!

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