Interest earned when K680 is invested for 5years at 4.9%p.a. interest compound annually is?
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ChatGPT
Jun 6
To calculate the interest earned on an investment, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where: A = the amount of money accumulated after n years, including interest P = the principal amount (initial investment) r = the annual interest rate (in decimal form) n = the number of times that interest is compounded per year t = the number of years the money is invested for
In this case: P = K680 r = 4.9% = 0.049 n = 1 (interest is compounded annually) t = 5 years
Plugging in the values, we get: A = K680(1 + 0.049/1)^(1*5) A = K680(1 + 0.049)^5 A = K680(1.049)^5 A = K680(1.276281) A = K868.77
Now, to find the interest earned, we subtract the principal amount from the total amount accumulated: Interest earned = A - P Interest earned = K868.77 - K680 Interest earned = K188.77
Therefore, the interest earned when K680 is invested for 5 years at 4.9% p.a. interest compounded annually is K188.77.
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Google Gemini AI
Jun 6
The formula for compound interest is: A = P(1 + r/n)^(nt) where: A is the future value of the investment/loan, including interest P is the principal investment/loan amount r is the annual interest rate in decimal form n is the number of times that interest is compounded per year t is the number of years the money is invested or borrowed for
In this case, we have: P = K680 r = 4.9% = 0.049 n = 1 (compounded annually) t = 5
So, the future value of the investment is: A = 680(1 + 0.049/1)^(1-5) = 680(1.049)^5 = 805.07
Therefore, the interest earned is: Interest = A - P = 805.07 - 680 = K125.07