Question
Megan saved R200 at 6% compound interest per year for 3 years. How much money does she have in her saving account after 3 years.
Answers
Answered by
GPT 3.5
To calculate the compound interest, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
In this case:
P = R200
r = 6% = 0.06 (decimal conversion)
n = 1 (compounded annually)
t = 3 years
A = 200(1 + 0.06/1)^(1*3)
A = 200(1 + 0.06)^(3)
A = 200(1.06)^(3)
A = 200(1.191016)
A = 238.2
Megan will have R238.20 in her savings account after 3 years.
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
In this case:
P = R200
r = 6% = 0.06 (decimal conversion)
n = 1 (compounded annually)
t = 3 years
A = 200(1 + 0.06/1)^(1*3)
A = 200(1 + 0.06)^(3)
A = 200(1.06)^(3)
A = 200(1.191016)
A = 238.2
Megan will have R238.20 in her savings account after 3 years.
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