Question #189558

Tshego won R165 000 and decided to deposit 65% of this amount in an account earning 8,25% interest per year, compounded every four months. The accumulated amount after five years is


[1] R248 203,55

. [2] R151 490,63.

[3] R247 862,83.

[4] R161 110,84.

[5] R161 332,31


1
Expert's answer
2021-05-24T01:10:03-0400

Solution:

Given, P= R 165,000

Deposit amount = 65% of P

r = 8.25% ,n = 4, t = 5

PV =65%×R 165,000=65\% \times R\ 165,000

PV=R 107250\Rightarrow PV =R\ 107250

A=p(1+rn)ntA=p(1+\frac{r}{n})^{nt}

A=107250×(1+8.25%4)4×5\Rightarrow A=107250×(1+\frac{8.25\%}{4})^{4×5}

A=R 161332.31\Rightarrow A=R\ 161332.31

Hence option (5) is correct.


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