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Mandla decides to start saving money for the future. At the end of each month, she deposits R900 into an account at a Bank, which earns 8,25% interest per annum compounded monthly after 29 years?
Anonymous
Apr 15
Mandla decides to start saving money for the future. At the end of each month, she deposits R900 into an account at a Bank, which earns 8,25% interest per annum compounded monthly after 29 years?
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ChatGPT
Apr 15
To calculate the future value of Mandla's savings after 29 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (initial deposit)
r = the annual interest rate (in decimal form)
n = the number of times the interest is compounded per year
t = the number of years the money is invested for
In this case:
P = R900
r = 8.25% = 0.0825
n = 12 (compounded monthly)
t = 29 years
A = 900(1 + 0.0825/12)^(12*29)
A = 900(1 + 0.006875)^(348)
A = 900(1.006875)^348
A = 900(6.032)
A = R5438.80
Therefore, after 29 years, Mandla's savings will grow to approximately R5438.80.
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (initial deposit)
r = the annual interest rate (in decimal form)
n = the number of times the interest is compounded per year
t = the number of years the money is invested for
In this case:
P = R900
r = 8.25% = 0.0825
n = 12 (compounded monthly)
t = 29 years
A = 900(1 + 0.0825/12)^(12*29)
A = 900(1 + 0.006875)^(348)
A = 900(1.006875)^348
A = 900(6.032)
A = R5438.80
Therefore, after 29 years, Mandla's savings will grow to approximately R5438.80.
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