Question

Lesiba invests an amount of money in an amount earning 13,88% interest per year, compounded weekly. After five years, this amount has accumulated to R50 000. The amount that was invested initially is

1.     R26 105,54.

2.     R15 300,00.

3.     R29 515,94

4.     R25 001,79.

5.     R34 700,00.

Answer 1

The amount that was invested initially is: $P = 50,000/(1 + 0.1388/52)^{260} = R25,001.79.$

So, the correct answer is 4.