Question

IBM decides to invest R425 000 in a fixed account that earns 15% interest. How much will the fixed account be worth in four years’ time?

Select one:

a.

R243 015

b.

R854 845

c.

R743 325

d.

R830 258

Answer 1

P = 425 000 x 1.15 x 1.15 x 1.15 x 1.15 = 743 325

c.

R743 325