First, calculate the amount of money the pensioner lost due to the 30% haircut policy:
Haircut amount = $85,000.00 x 30% = $25,500.00
After the haircut, the pensioner's investment amount is:
$85,000.00 - $25,500.00 = $59,500.00
Now, calculate the simple interest earned each year:
Simple interest = $59,500.00 x 18% = $10,710.00
After 4 years, the total investment amount will be:
Total investment amount = $59,500.00 + ($10,710.00 x 4) = $59,500.00 + $42,840.00 = $102,340.00
Therefore, after 4 years, the pensioner's investment will be $102,340.00.
The economy of Ghana has suffered a considerable hair cut policy of 30% A pensioner who invested $85,000.00 in a bond was affected by this policy. The bank however is prepared to pay a simple interest of 18% per annum after the hair cut on the investment. Assuming the pensioner decided to invest his amount for 4years, calculate his investment after the said period.
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