How long will it take for R200 000 to grow to R240 000 if the interest rate is 6% per year and interest is compounded every 3 months?

Answer 1

i = .06/4 = .015
n = ?
200000(1.015)^n = 24000
1.015^n = 1.2
take log of both sides
log (1.015^n) = log 1.2

n log 1.015 = log 1.2
n = log 1.2/log 1.015 = 12.25 quarter years
= appr 3 years and 3 weeks

Answer 2

Joseph invests R36000 at a simple rate of 6% per year. How much will thisend amounts to in 6 years and 5 months