Bongiwe invested a certain amount into a savings account at 6,5% compound

Question

interest per annum. If the final amount is R15 300 after 5 years, how much did
she originally invest

Answer 1

To find out how much Bongiwe originally invested, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = final amount
P = principal/initial investment
r = annual interest rate (in decimal form)
n = number of times the interest is compounded per year
t = number of years

Given:
A = R15,300
r = 6.5% = 0.065
t = 5 years

Now we can rearrange the formula to solve for P:

P = A / (1 + r/n)^(nt)

P = 15300 / (1 + 0.065)^5

P ≈ R11,447.09

Bongiwe originally invested approximately R11,447.09.