We can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = amount after time t
P = principal (initial amount)
r = annual interest rate
n = number of times the interest is compounded per year
t = time in years
Plugging in the given values, we get:
A = 12000(1 + 0.065/1)^(1*5)
A = 12000(1.065)^5
A ≈ 16,362.36
Therefore, there will be approximately R16 362.36 in the savings account after 5 years.
Bongiwe invests R12 000 in a savings account at 6.5% per annum compound interest. Calculate how much there will be in a savings account after 5 years
1 answer
1 answer