Question #192452

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

[1] R247 862,83.

[2] R151 490,63.

[3] R248 203,55.

[4] R161 110,84.

[5] R161 332,31.


1
Expert's answer
2021-06-14T17:08:35-0400

given,

p= R 165,000

DEPOSIT AMOUNT = 65% OF P

R = 8.25%

M = 4

N = 5

PV =65%×R165,000=65\% \times R 165,000

PV=R107250PV =R 107250

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

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

A=R161332.31A=R161332.31

Hence option 5 is correct


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