To find the amount left in the account, we need to calculate the new balance after the withdrawal.
Firstly, we calculate the interest earned over the two-year period using the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the amount after interest
P = the principal amount (initial savings)
r = annual interest rate (8% as a decimal = 0.08)
n = number of times interest is compounded per year (monthly = 12)
t = time in years (2)
A = 25000(1 + 0.08/12)^(12*2)
A = 25000(1 + 0.00666666667)^(24)
A ≈ 25000(1.00666666667)^24
A ≈ 25000(1.177191940048)
A ≈ 29429.80
The amount after two years would be approximately RM29,429.80.
Next, we subtract the amount withdrawn from the balance after two years:
Remaining balance = 29429.80 - 14000
Remaining balance = 15429.80
The amount left in the account after the withdrawal is approximately RM15,429.80.
aris saved rm25,000 at 8% compounded monthly,two years later,he withdrew rm14000 from the savings, find the amount left in the account
1 answer
1 answer