Andile deposits R900 into a savings account paying 6.5% interest per year, compounded quarterly.After three and a half years he withdraws R1000 from the account and deposit it into a second account paying 11% simple interest per year.
1.How much is the total amount accrued in the first account two years after withdrawing R1000 the correct answer rounded to the nearest Rand is?
*R145
*R1105
*R605
*R128
2. The number of years after Andile deposited the 1000 ino the second account,accrued amount in the second account is 1605.The time (correct to two decimal places) the money was is invested for, is
*4.36 years
*5.50 years
*9.31 years
*4.53 Years
Solution 1
Here P = R900
Interest rate percent
The interest is compounded quarterly, so
And the number of years (after withdrawing R 1000)
Then using the formula
So, the amount after 3.5 years is
And when he withdraws R 1000, the amount left is
Now after two years,
Investment Amount
Number of years
Therefore, using
The correct answer is first option R 145
Solution 2
Here,
is Interest, which is calculated as
Using the values in , we get
Hence years
Therefore, the second option is correct.
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