Answer to Question #242776 in Financial Math for nad

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

The total amount of savings including the interest after 20 years is:

$FV = 500\times\frac{1.03^{20}-1}{0.03} = RM13,435.19.$