Question

The a umulated amount that you will re eive after 52 months if you deposit R7 300 into an a ount whi h earns 9,7% interest per year, ompounded every se ond month, is

[1] R7 825,36.

[2] R10 368,43.

[3] R11 076,73.

[4] R8 388,53.

[5] none of the above.

Answer 1

Given that:

$FV=P(1+\frac{r}{m})^{nm}$

Where FV is the future value,

PV= R7300

r=9.7%

n=$4\frac{1}{3}$ years

m=6

$\therefore FV=7300(1+\frac{0.097}{6})^{6×4\frac{1}{3}}$

$FV=R11076.73$

Option [3] is the right answer