Answer to Question #242408 in Financial Math for Mizan

Question

Mr. Nazri saves RM500 at the beginning of each year. He receives an interest of 3% each year. Find the total amount of savings including the interest after 20 years

Answer 1

$$F=P(\dfrac{(1+r)^n-1}{r})$$

$$F=500(\dfrac{(1+0.03)^{20}-1}{0.03})=13435.19$$

The total amount of savings including the interest after 20 years is $RM13435.19$