a) After t years initial investment of RM15,000 would have value:
15000∗(1+0.07/4)4t=300000
which means that:
1.01754t=20
t=4log1.017520
t≈43.169 years
b) After three years Sarah had in her account the following sum:
5000∗(1+0.05/2)6
After withdrawal of 3 000 she had:
5000∗(1+0.05/2)6−3000
After two more years (i.e. five years she made her investment) she had:
[5000∗(1+0.05/2)6−3000]∗[1+0.05/2]4≈3088.984 RM
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