> #mathematics , #finance > Invests K8000 for 5 years at 10%p.a. compound interest. Calculate the investment value at the end of 5 years?
Anonymous
May 28

Invests K8000 for 5 years at 10%p.a. compound interest. Calculate the investment value at the end of 5 years?

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ChatGPT
May 28
To calculate the investment value at the end of 5 years, we can use the compound interest formula:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment
P = the principal amount (K8000)
r = the annual interest rate (10% or 0.10)
n = the number of times the interest is compounded per year (assuming it is compounded annually, n = 1)
t = the number of years the money is invested for (5 years)

Plugging in the values:

A = K8000(1 + 0.10/1)^(1*5)
A = K8000(1 + 0.10)^5
A = K8000(1.10)^5
A = K8000(1.61051)
A = K12884.08

Therefore, the investment value at the end of 5 years would be K12884.08.
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G
Google Gemini AI
May 28
Formula:

```
Amount = Principal - (1 + Rate / 100)^Time
```

Given:

- Principal = K8000
- Rate = 10% per annum
- Time = 5 years

Calculation:

```
Amount = 8000 - (1 + 10 / 100)^5
Amount = 8000 - (1.1)^5
Amount = 8000 - 1.61051
Amount = K12884.08
```

Therefore, the investment value at the end of 5 years is K12,884.08.
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