Answer to Question #217335 in Financial Math for Hanna

Question

Sir Yvanna Samanta invest 10, 000FCFA in a fund with a monthly rate of 1%. After 12months she will receive?

Answer 1

$Given \space \\ Principal \space \space = \space 10000 \space FCFA \\ Interest \space rate \space = \space 1 \% \space per \space month\\ Investment \space time: \space = \space 12 \space months\\ \\ solution \\ Convert \space interest \space rate \space of \space 1rate \space per \space year \space = \space rate \space per \space month \space × \space 12 \space = \space 1\% \space × \space 12 \space = \space 12 \space \% \space =0.12 \\ Convert \space 12 \space months \space into \space years. \\ 12 \space months \space = \space 1 \space years \space \\ Find \space an \space interest \space by \space using \space the \space formula \space I= \space P \space . \space i \space . \space t \space , \space where \space I \space is \space interest, \\ \space P \space is \space total \space principal, \space i \space is \space rate \space of \space interest \space per \space year, \space and \space t \space is \space total \space time \space in \space years. \\ In \space this \space examplee \space P \space = \space 10000, \space i \space = \space 0.12 \space and \space t \space = \space 1 \space years, \space so \\ \\ I \space = \space \space P \space . \space i \space . \space t \space \\ I= \space 10000 \space × \space 0.12 \space × \space \space 1 \\ I \space =1200 \space \\ \space \space Find \space an \space amount \space by \space using \space the \space formula \space A \space =P \space + \space I \space . \\ \\ Since \space P \space = \space 10000 \space and \space I \space = \space 1200 \space we \space have \\ A \space =P \space + \space I \space \\ A \space =10000 \space + \space 1200 \\ A \space = \space 11200 \space FCFA \\ After \space 12months \space she \space will \space receive \space 11200 \space FCFA \\$