Answer to Question #92687 in Financial Math for Masungulo

Question

Find the amount of interest that a person will earn if he invests an amount of R9000 for 30 months, at an interest rate of 6% per annum, with the interest compounded semi-annually. (Leave your answer as an expression in exponential form as you may not use a calculator.)

Answer 1

Compound interest=$P(1+\frac{r}{n})^{nt}-P$

=$9000\times(1+\frac{0.06}{2})^{2\times{2.5}}-9000$