The formula to calculate compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan
P = the principal investment amount (R15,000)
r = annual interest rate (7.5% or 0.075)
n = number of times that interest is compounded per year (assuming it is compounded annually, n = 1)
t = number of years the money is invested for (5 years)
Plugging in the values:
A = R15,000(1 + 0.075/1)^(1*5)
A = R15,000(1 + 0.075)^5
A = R15,000(1.075)^5
A = R15,000(1.40796579688)
A = R21,119.48
Therefore, there will be approximately R21,119.48 in the savings account after 5 years.
Bongiwe invests R15 000 in a savings account at 7,5% per annual compound interest calculate how much there will be in the savings account in 5years
1 answer
1 answer